Standard Chartered Bank’s profit before tax increased 38 percent year on year for the nine months to September 2022 with the lender attributing the performance to a healthy business momentum that continues to drive growth with income up 10 percent.
“Costs increased 9 percent because of inflationary pressure as well as investment spending, whilst expected credit losses have significantly reduced year-on-year. We have achieved this performance by actively supporting our clients in an increasingly unpredictable operating environment. I am also pleased to announce that the Board approved the payment of an interim dividend of KShs 6.00 to our ordinary shareholders,” said Kariuki Ngari, Chief Executive Officer.
Summary financial performance
- Income increased by 10 percent due to asset volume growth, expansion in net interest margins, and favorable market movements.
- Operating expenses were up 9 percent reflecting the impact of inflation, an increase in amortization charges, as well as increased investment, and spending on digital capabilities.
- Loan impairment declined by 77 percent benefitting from improved delinquencies as the economic environment continues to rebound.
Asset quality remained stable however we continue to be alert to a volatile external environment. Net customer loans and advances were up 8% reflecting the recovery of our client’s businesses. Customer deposits continued to grow with funding quality remaining high – current and savings accounts making up 93 percent of total customer deposits.
The directors have announced the payment of an interim dividend of KShs 6.00 for every ordinary share of KShs 5.00. The Board recognizes the importance of dividends to shareholders and remains committed to sustainable shareholder returns.