Standard Chartered Bank Kenya exhibited commendable resilience in Q3’2023, navigating a challenging economic landscape with the bank’s pre tax profit rising by 11.3 percent year-on-year, resulting in an 11.8% increase in Profit After Tax (PAT) to KES 9.7 billion, compared to KES 8.7 billion in the same period last year.
“We have delivered a solid set of results for the nine months ended 30 September 2023 with Profit before Tax (PBT) increasing 11pc year on year. Strong top line growth of 20% mitigated growth in operating costs of 20% attributed to inflationary pressure and investment spend on our digital capabilities,” said Kariuki Ngari, StanChart Chief Executive Officer.
Net Interest Income (NII) experienced a significant surge of 34.5%, reaching KES 21.2 billion in Q3’2023. However, Non-Funded Income (NFI) saw a slight decrease of 6.6% to KES 8.2 billion. Total operating expenses increased by 28.4% to KES 15.8 billion, primarily due to a 193.4% rise in loan loss provisions, totaling KES 1.8 billion.
Staff costs also rose by 19.8% to KES 6.2 billion, indicative of broader operational challenges faced by businesses.
The bank’s balance sheet expanded by 1.0%, reaching KES 369.7 billion, driven by a 5.5% increase in net loans, totaling KES 143.6 billion. Notably, the bank’s placements in government securities decreased by 50.3% to KES 55.6 billion in Q3’2023.
Customer deposits increased by 4.5% to KES 298.8 billion, signaling growing confidence among customers despite economic challenges. while foreign exchange income demonstrated impressive growth, surging by 49.8% to KES 6.3 billion from KES 4.2 billion in Q3’2022. The Bank also declared an interim dividend of KES 6.0 per share.
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