Standard Chartered Bank Kenya reported a strong increase in profits for the first quarter of 2024. Profits jumped 39.5% to KSh 5.62 billion, compared to KSh 4.03 billion in the same period in 2023.
This growth is primarily driven by a 21.4% increase in total operating income. Both funded and non-funded income saw double-digit growth, rising 20.0% and 23.9% respectively.
Earnings per share (EPS) also rose significantly, by 36.7%, to KSh 14.42 from KSh 10.55 in Q1 2023.
Improved Credit Quality and Loan Growth
While operating expenses increased by 6.0% to KSh 5.43 billion, the bank also benefited from a reduction in loan risk.
The bank reduced its loan loss provisions by 24.6%, reflecting a 26.9% decrease in non-performing loans to KSh 16.5 billion. This indicates more cautious lending practices and a healthier loan portfolio.
Its loan book grew by 12.0% to KSh 153.58 billion, signalling rising demand for credit. Total assets also edged up slightly (0.8%), partly due to a 1% increase in customer deposits.
However, the loan-to-deposit ratio rose above 50% for the first time since Q1 2020.
Furthermore, Standard Chartered significantly reduced its investments in government securities, down from KSh 92.9 billion in Q1 2023 to KSh 50.34 billion in Q1 2024.
Conversely, deposits and balances held with other local banks increased dramatically, from KSh 1.765 billion to KSh 8.82 billion over the same period.
Standard Chartered’s strong Q1 performance maintains a positive trend, with the bank consistently issuing dividends to shareholders. In 2023, the dividend payout increased from KSh 22 per share to KSh 29 per share.
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