Standard Chartered Bank Kenya chief executive Kariuki Ngari. PHOTO | NMG Standard Chartered Bank Kenya net profit for the first half of the year grew 50.9 percent to Sh4.88 billion helped by increased non-interest income and a fall in operating expenses.
Results released on Monday morning showed net profit rose from Sh3.23 billion earned in the preceding similar period, placing it on a recovery path from decade-low earnings posted last year.
“Our first half of 2021 was one of recovery. Lockdowns, both locally and globally of various forms have come and been relaxed affecting economic activity,” said Kariuki Ngari, CEO StanChart Kenya.
“Profit before tax recovered strongly from last year, helped by strong underlying business momentum, improved loan impairments and operating cost efficiencies.”
Non-interest income rose 13.5 percent to Sh4.99 billion driven by improved performances in wealth management and financial markets.
Net interest income, which largely comes from loans and advances, fell by three percent to Sh9.12 billion, driven by lower average yields despite the loan book expanding seven percent to Sh130.28 billion.
However, operating expenses reduced by 15.8 percent to Sh7.32 billion, helped by lower provisioning for loan defaults and a cut on spending on staff.
“Loan impairment declined by 61 percent (to Sh638.5 million) reflecting the work we have done over the last few years to ensure our portfolios are in good shape and resilient to stress and supported by improving macroeconomic variables,” said Mr Ngari.
During the review period, staff costs declined by 3.7 percent to Sh3.21 billion, reflecting the saving that has come on the back of the voluntary early retirement programme that cut the number of employees.
The lender last year spent Sh1.35 billion on the layoff programme, marking the seventh straight year of cutting staff numbers as more attention shifted to digital services.
