StanChart Records Highest Profits In 5 Years

Standard Chartered Bank has reported a 70 percent increase in profit before tax in 2021 despite the tough economic challenges caused by the Covid-19 pandemic.

The profits were driven by an increase in non-interest income by 25 percent with strong performances in wealth management and financial markets, a decrease in the bank’s operating expenses by 10 percent due to investment in transformational digital initiatives.

There was also a reduction in loss loan provision, increase in customer deposits by 3 percent, increase in loans and advances to customers by 4 percent. The funding quality remains high with current and savings accounts making up 91 percent of total customer deposits.

The bank’s income returned to growth after the dip last year occasioned by the impact of the pandemic, increasing 6 percent with strong underlying business momentum. Loan loss provision was reduced as the bank worked closely with their clients and supported them manage through the pandemic.

“We continue to transform how we serve our customers through innovations, partnerships, and digitization whilst maintaining tight control on expenses with underlying efficiencies funding continual investment.” CEO Kariuki Ngari.

According to CEO Kariuki Ngari, the Bank is well capitalized with a highly liquid balance sheet reporting a total capital ratio of 17.76 percent and a liquidity ratio of 71 percent respectively.

As the CEO highlighted, the liquidity ratio at 71 percent remains well above the regulatory threshold of 20 percent. The total capital ratio of 17.76 percent is above the regulatory minimum and within the bank’s capital risk appetite.

The Balance Sheet for 2021 full-year financial results remains strong and highly liquid. Loans and advances to standard chartered clients increased by 4 percent. The overall asset quality remained stable.

Standard Chartered reported an increase in total operating income by 6 percent. Within this: Net interest income decreased 2 percent with increased volumes more than offset by lower average yields.

“We are proud of our performance in 2021 – we delivered our highest profit in 5 years,” CFO Chemutai Murgor.

One of the key highlights to note is that standard chartered credit impairment declined by 46 percent to KShs 2.082 million. The bank’s overall portfolio remains stable and resilient. Standard Chartered is well-positioned to support clients as the local and global economies recover.

“We have a huge opportunity to build a better future with our customers and communities. We believe that we can fulfill our Purpose – to drive commerce and prosperity through our unique diversity” CEO Kariuki Ngari

The Board of Standard Chartered Bank will be recommending to the shareholders the payment of a final dividend of 14.00 shillings for every ordinary share of 5.00 shillings at the forthcoming Annual General Meeting. An interim dividend of 5.00 shillings was declared and paid in December 2021.

This will bring the total dividend for the year to KShs 19.00 per ordinary share which is 81% higher than that paid in 2020.

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