This archive report was first published on 25 August 2020.
Published on August 25, 2020, Standard Chartered Bank Group reported a decline in its half-year net earnings to KSh 3.2 Billion, compared to KSh 4.7 Billion posted over a similar period last year.
The Group's unaudited results for the half-year period ended June 30, 2020, showed a significant increase in loan loss provisions, rising four-fold from KSh 378.9 Million to KSh 1.6 Billion.
Non-interest income declined from KSh 4.7 Billion to KSh 4.4 Billion, with fees and commissions from loans to customers decreasing from KSh 160.9 Million in H1, 2019, to KSh 152.5 Million at the end of June 2020.
Foreign exchange trading earnings also declined from KSh 1.6 Billion to KSh 1.5 Billion, while Total Operating Income slid to KSh 13.8 Billion from KSh 14.6 Billion.
Interest income on loans to customers fell from KSh 6.7 Billion to KSh 6.3 Billion, contributing to a decline in Total Interest Income to KSh 11.9 Billion from KSh 12.7 Billion.
The Group's pre-tax profit stood at KSh 5.1 Billion, down from KSh 6.9 Billion in the 2019 half-year period, while Total Comprehensive Income fell to KSh 3.9 Billion from KSh 5.2 Billion during H1, 2019.
Stanchart Group's Earnings Per Share (EPS) declined to KSh 9.17 compared to KSh 13.46 in the first half of 2019.
Despite the challenges, the lender's balance sheet size grew from KSh 294.5 Billion to KSh 327.2 Billion, with its loan book increasing in size from KSh 120.1 Billion to KSh 134.3 Billion.
Customer deposits increased from KSh 228.5 Billion to KSh 256.5 Billion, while the bank's equity rose from KSh 46.9 Billion to KSh 51.7 Billion.
Financial analysts warn that the present challenging environment for banks is likely to continue for the remainder of the year, as individuals and firms struggle to repay their loans due to disruptions caused by the COVID-19 pandemic.
