Standard Chartered Bank Kenya has posted a 10.2 per cent rise in profit across the opening half of 2022 to Ksh.5.4 billion from Ksh.4.9 billion previously.
The rise in earnings is largely attributable to higher operating income which improved by 10.6 per cent to Ksh.15.6 billion from Ksh.14.1 billion.
Net interest income was up by 9.9 per cent at Ksh.10 billion from Ksh.9.1 billion while non-interest funded income (NFI) was higher by 10 per cent at Ksh.5.5 billion.
Nevertheless, Stan Chart’s non-interest operating expenses paced up by 9.6 per cent to Ksh.8 billion.
This is irrespective of an 83 per cent deceleration in loan-loss provision costs to Ksh.108.2 million from Ksh.638.5 million.
The lower provisions for potential loan-defaults is anchored on a slight downturn in bad loans with the lender’s gross non-performing loans (NPLs) registering a slight dial-down to Ksh.22.7 billion from Ksh.22.9 billion in June 2021.
During the opening half of the year, Standard Chartered’s balance sheet has expanded to an asset base of Ksh.364.3 billion from Ksh.345.6 billion previously despite a minor 1.4 per cent loan book attrition with net loans and advances to customers easing to Ksh.128.5 billion.
The bank’s customer deposits have nevertheless grown by 3.1 per cent to Ksh.286.9 billion from Ksh.278.2 billion.
Stan Chart earnings per share (EPS) have improved to Ksh.13.87 from Ksh.12.69 subsequent to the profit rise.
The bank’s board of directors have nevertheless skipped issuing an interim dividend for the period.