Standard Chartered Bank of Kenya has announced a Ksh6.0 per share interim dividend, following the release of the Bank’s Q3’2022 earnings which saw a 37.1% increase in profits after tax to Ksh8.7 billion, from Ksh6.4 billion in a similar period last year.
The interim dividend saw the lender remain one of the consistent dividend-paying banking stocks, with an interim dividend of Ksh5 per share in Q3’2021 and a final dividend payout of Ksh14 per share at the end of 2021.
SCBK’s earnings were boosted by a 10.3% increase in total operating income to Ksh24.6 billion from Ksh22.3 billion in Q3’2021, coupled with an 8.3% decline in total operating expenses to Ksh12.3 billion from Ksh13.4 billion. Operating income growth was mainly attributable to an uptick in interest income by 7.3% to Ksh15.8 billion from Ksh14.7 bn in Q3’2021, coupled with a 16.1% increase to Ksh8.8 billion from Ksh7.6 billion last year.
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Notably, on the balance sheet, exposure to government securities increased by 13.2% to Ksh112.0 billion from Ksh99.0 billion in Q3’2021, compared with a 3.3% loan book expansion to Ksh136.1 billion from Ksh131.7 billion, an indication of higher perceived credit risk. This is despite the bank significantly slashing loan loss provisions, by a massive 76.8% to Ksh0.6 billion from Ksh2.7 billion last year. Total assets recorded a 10.7% growth while total liabilities recorded an 11.9% growth.
Key performance metrics such as efficiency and profitability improved, with the cost-to-income ratio without LLPs improving to 47.4%, from 48.0% in Q3’2021. In comparison, return on average equity improved to 21.0% from 14.5% in last year. Additionally, asset quality improved with the gross non-performing loans ratio easing slightly by 0.2% points to 15.1% from 15.3% in Q3’2021.
The interim dividend of Ksh6 per share translates to a dividend yield of 4.3% as of November 23, 2022, payable on December 29 upon book closure on December 15, 2022.
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