Standard Chartered Bank Kenya announced Wednesday a 27% increase in profit before tax for the first half of 2023, boosted by strong growth across business lines.
The bank reported pretax profit of KES 9.64 billion in January-June, up from KES 7.57 billion in the same period last year. Revenue jumped 34% to KES 20.88 billion.
“We are pleased to release our first half of the year financial results which reflects a strong profit before tax growth of 27%,” said Kariuki Ngari, CEO of Standard Chartered Kenya. “This result has been delivered by a strong top line growth of 34% from a stellar performance by both businesses.”
Ngari said the results demonstrate resilience despite “a volatile and challenging macro-economic environment.”
Loan impairment increased by KES 1.9 billion reflecting a volatile and challenging micro-economic environment. However, net loans and customer deposits edged up amid stable asset quality.
Operating expenses rose 17% on technology investments and higher staff costs.
Ngari said Standard Chartered remains focused on clients and “staying true to our brand promise, here for good.” But he noted headwinds from inflation and global uncertainties.
“We are optimistic of a better external environment in the second half of the year,” Ngari added, citing cooling inflation and government measures to stabilize the economy.
Standard Chartered, which traces its roots in Kenya to 1911, is one of the country’s largest banks with 60 branches. The lender is pursuing digital transformation under its new strategic plan launched last year.
Here is a table from the key financial numbers;
|Financial Metric||H1 2023||H1 2022||Change|
|Net interest income (KShs billion)||13.851||10.014||+38%|
|Non-funded income (KShs billion)||7.027||5.542||+27%|
|Total operating income (KShs billion)||20.878||15.556||+34%|
|Operating expenses (KShs billion)||9.198||7.879||+17%|
|Loan impairment (KShs billion)||2.036||0.108||+1,785%|
|Profit before tax (KShs billion)||9.644||7.569||+27%|
|Profit after tax (KShs billion)||6.909||5.410||+28%|
|Earnings per share||18.07||13.87||+30%|