StanChart earnings up 17% to Sh8 billion

Kenyan unit of Standard Chartered Bank net profit for 2018 grew by 17 per cent to KSh8.1 billion mainly driven by income from government securities which increased by 10% to KSh12.5 billion. Income from loans and advances slightly dropped by 3 percent to reach KSh13.1 billion. The bank’s income from interest charges and non-interest income grew at the same rate of 5 percent.

Standard Chartered bank managed to grow its customer deposits by 5 per cent to KSh224 billion. However, loans and advances to customers went down 6 per cent from KSh126 billion to KSh119 billion.

Despite the drop in the value of loans and advances to customers, the bank’s total non-performing loans rose by 22 percent from KSh11.3 billion to KSh13.9 billion.

The bank’s operating expenses dropped by 3 per cent to KSh 24.2 billion on the back of a 53 per cent decline in loan loss provision expenses.

Directors of the bank recommend a final dividend of KSh14 for every ordinary share held. If approved by the shareholders, total dividend payout will rise 12 per cent from KSh17 paid in 2017 to KSh19.