Standard Chartered Bank reported a 12% increase in profit after tax for the nine-month period ending in September.
The bank’s net profit increased from Ksh.8.7 billion to Ksh.9.7 billion, driven by a 35% increase in loan interest income, increased short-term money market investments, and improved margins.
StanChart’s CEO, Kariuki Ngari, praised the company’s strong performance, highlighting an 11% year-on-year increase in Profit before Tax.
“Strong top line growth of 20% mitigated growth in operating costs of 20% attributed to inflationary pressure and investment spend on our digital capabilities,” said Kariuki Ngari, StanChart Chief Executive Officer.
A 20% increase in top-line revenue offset a rise in operating costs due to inflationary pressures and strategic digital investments.
The bank’s total operating income increased from Ksh.24.6 billion to Ksh.29.4 billion during the review period, indicating a progressive trajectory.
Net interest income increased significantly, surpassing Ksh.21.2 billion, due to a 3% increase in loans and advances, reaching Ksh.143.6 billion.
Despite a significant financial recovery, there was a Ksh.1.2 billion increase in loan impairment charges, indicating the ongoing challenges in the current macroeconomic environment.
Ngari emphasized the bank’s unwavering commitment to providing dependable client support during this challenging period.
Customer deposits increased by 7% from December 2022, reaching Ksh.298.8 billion, marking a significant increase in the company’s financial health.
StanChart board approved interim dividend of Ksh.6 for ordinary shareholders, demonstrating confidence in financial strength and commitment to rewarding stakeholders amidst changing economic conditions.