Standard Chartered bank Kenya recorded a 5% growth in pre-tax profits to ksh6.9 billion, attributed to a 70% drop in the bank’s provision for bad loans.
“Loan impairment was 70 per cent lower than in the same period last year reflecting on going management actions to improve overall asset quality,” the bank said in a statement.
The bank’s profit after tax closed at Sh6.9 billion for the period ended June 30 from Sh4.47 billion in a similar period last year.
The lender’s net interest income remained flat at Sh9.84 billion as a result of compressed margins from capped interest rates.
The firm reported a slow down in average investment in government securities held for dealing purposes which dipped by 20.97 per cent to Sh4.56 billion compared to the same period last year.
The bank’s financial report shows loans and advances to customers grew by 7.44 per cent to Sh120.06 billion while deposits dropped marginally by 1.02 per cent to sh228.5 billion.
The lender said the positive results also increased in net profit in the half year on account of increased digitization.
“We have positioned ourselves to disrupt with digital, reinforce market leadership in wealth management and increase our cross-border network business as we support and grow with our clients,” Standard Chartered Bank CEO Kariuki Ngari said.
Investors earnings per share grew to Sh12.4 from Sh11.74 over the same period last year while the declared dividend per share stagnated at Sh5.