Standard Chartered Bank has reported a Ksh. 12.1 Billion net profit for the financial year ended 31st December 2022, this represents a 34% increase from the Ksh. 9 Billion which was reported in a similar period last year.
The rise in profitability was on the back of a 16% rise in the Total Operating income to Ksh. 34 Billion as a result of a 18% rise in the net interest income to Ksh. 22.2 Billion due to asset volumes growth and expansion in net interest margins as interest rates rose. While the non funded income increased by 13% to hit Ksh. 11.8 Billion due to favourable market movements and strong performance in the Wealth Management business
On the other hand, operating expenses increased 8 per cent to Ksh. 15.6 Billion reflecting the impact of inflation as well as increased investment spend on digital capabilities. At the same time, loan impairment reduced by 38% to Ksh. 1.3 Billion, down from Ksh. 2.1 Billion the previous year due to improved economic conditions which narrowed the losses.
Loans and advances to customers rose by 11 per cent to Ksh. 139.4 Billion reflecting increased business activities by our clients. Deposits from customers continued to grow, up by 5 per cent to Ksh. 278.9 Billion with funding quality remaining high with current and savings accounts making up 93 per cent of total customer deposits.
Kariuki Ngari, Chief Executive Officer, said: “We have delivered a strong set of results in 2022, with profit before tax up by 36 per cent, with business momentum driving top-line growth of 16 per cent. Our Wealth Management, Transaction Banking and Financial Markets products performed strongly. I am particularly pleased with our discipline around expenses that helped us navigate the inflationary pressures of 2022 but still allowing us room to invest in our digital capabilities. Our costs were up by 8 per cent in comparison to the double-digit growth in income of 16 per cent, enabling us to deliver a strong income-to-cost jaws of 8 per cent.”