A pre-colonial era monument stands along Kenyatta Avenue in front the Standard Chartered Bank in Kenya’s capital Nairobi, file. . REUTERS/Noor Khamis/File Photo
NAIROBI, March 14 (Reuters) – Standard Chartered Bank Kenya said on Monday its pretax profit soared 70% last year to a five-year high but surging energy prices because of Russia’s invasion of Ukraine and other factors clouded the outlook.
The lender, which is controlled by Standard Chartered Plc (STAN.L) , posted a pretax profit of 12.6 billion shillings ($110.4 million), as net impairment losses fell by nearly half with the easing of COVID-related restrictions.
"Some of the optimism we had has been tempered somewhat by Russia’s invasion of Ukraine," Chief Executive Kariuki Ngari told an investor briefing.
Kenya, like other oil importers, has felt the impact of rocketing crude prices as the West tightens sanctions on Russia.
StanChart, one of the oldest banks in the East African nation, has been pivoting to wealth management in recent years, to get an edge over bigger rivals like KCB Group and Equity (EQTY.NR) , which have big leads in the mass market.
Stanchart said its non-interest income, the share of revenue derived from transactions, grew by a quarter during the year, helped by its wealth management and financial markets business.
"We are no longer limited to savings and fixed deposits," Ngari said, adding that clients were investing in local bonds and shares in foreign markets through StanChart’s platform, as part of that diversification strategy.
StanChart had 131 billion shillings under management last year, he said. It has employed 100 certified wealth management advisers.
The bank’s net losses from bad debts slid as the government removed restrictions put in place to curb the spread of the coronavirus, including an overnight curfew, allowing distressed borrowers to start servicing their loans, said Chief Financial Officer Chemutai Murgor.
The bank boosted total dividend for the period 81% to 19 shillings per share.($1 = 114.1000 Kenyan shillings)
