Standard Chartered announces Q3 2019 results

Standard Chartered Bank Kenya Limited today announced a pre-tax profit of KShs 9 billion for the nine months ended 30 September 2019.

“Our digital investments to transform the Bank, develop and scale new business models continue apace. This has been positively received by our clients and key client digital adoption measures continue to improve. We have over 70 digital services and products on our mobile app enabling over 80% of transactions to be conducted digitally. Close to 90% of our corporate clients are utilising our Straight2Bank platform and over 20% of Kenya Revenue Authority tax receipts are processed through our real-time Integrated Tax Payment solution. The Bank was recently awarded ‘Best Consumer Digital Bank’ and ‘Best Bank for Cash Management’ in Kenya, 2019 by Global Finance”, said Kariuki Ngari, Chief Executive Officer.

Performance summary

Net interest income remained flat due to compressed margins.

  • Interest income declined by 6 per cent to KShs 19.1 billion weighed down by declining yields and lower average investment in government securities. Interest income from customer loans and advances increased by 2 per cent on the back of higher average volumes.
  • Total interest expense decreased by 24 per cent to KShs 4.4 billion from proactive management of the balance sheet.

Non-interest income was flat year on year at KShs 7 billion impacted by a slowdown in corporate finance.

Operating expenses are up 12 per cent driven by investments in technology, cyber security and staff. 

Loan impairment was 61 per cent lower than in the same period last year reflecting on going management action to improve overall asset quality.

Loans and advances to customers remained flat at KShs 119 billion compared to December 2018 as we continued to focus on higher quality asset origination to ensure we grow our balance sheet in a sustainable manner.

Customer deposits grew modestly to KShs 225 billion compared to KShs 224 billion in December 2018.

Gross non-performing loans at KShs 19.9 billion are down 8 per cent from the end of 2018. Overall credit quality has remained stable. We continue to focus on the quality of the balance sheet. The cover ratio of 67 per cent remains above the industry average of 35 per cent.

The Bank remains well capitalised to support sustainable growth opportunities.

  • The total capital ratio is at 18.86 per cent with a prudent surplus to regulatory requirements; and
  • We are a deposit funded bank with a liquidity ratio at 68 per cent.

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