StanChart's Profit Before Tax Up By 16 Percent

StanChart’s Profit Before Tax Up By 16 Percent

By Soko Directory Team / Published May 18, 2022 | 3:23 pm

KEY POINTS

Income increased by 5 percent with a strong performance in net interest income, Financial Markets, and Wealth Management.

KEY TAKEAWAYS

The liquidity ratio at 72% remains well above the regulatory threshold of 20 percent. The total capital ratio of 17.62 percent is above the regulatory minimum and within our capital risk appetite.

Standard Chartered Bank has registered a profit before tax of 16 percent for the first quarter of 2022. “Our first-quarter performance was strong despite volatile and challenging market conditions. Our profit before tax grew 16% year-on-year with strong underlying business momentum.”

Income increased by 5 percent with a strong performance in net interest income, Financial Markets, and Wealth Management. Expenses increased 9 percent mainly due to digital investments as we continue to transform how we serve our clients.

Asset quality remained resilient in the first quarter however we continue to remain alert to the challenging external environment. The Bank remains well-capitalized and highly liquid with a total capital ratio of 17.62 percent and a liquidity ratio of 71.56 percent.

At the same time, the operating income increased 5 percent from strong performance in net interest income, Financial Markets, and Wealth Management. Net interest income increased 7 percent due to higher asset volumes and lower customer deposits cost of funds.

Non-interest income was flat with continued positive momentum in Wealth Management and Financial Markets offset by lower fee income. Operating expenses were up 9 percent from increased investment spent into transformational digital initiatives including partnerships.

At the same time, the loan impairment declined by 121% reflecting the impact of a release in management overlays, primarily relating to COVID-19.

The lender says that the net loans and advances to customers increased 2 percent from 31 December 2021. Asset quality remained stable. Customer deposits remained flat from 31 December 2021 at 265 billion shillings. Funding quality remains high with current and savings accounts making up 92 percent of total customer deposits.

The liquidity ratio at 72% remains well above the regulatory threshold of 20 percent. The total capital ratio of 17.62 percent is above the regulatory minimum and within our capital risk appetite.

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