This archive report was first published on 23 August 2021.
On August 23, 2021, Standard Chartered Bank Kenya reported a significant improvement in its financial performance, with a 50.9 percent increase in net profit to Sh4.88 billion for the first half of the year.
The bank's recovery is attributed to increased non-interest income and a reduction in operating expenses. Non-interest income rose by 13.5 percent to Sh4.99 billion, driven by improved performances in wealth management and financial markets.
Net interest income, however, fell by three percent to Sh9.12 billion, due to lower average yields despite a seven percent expansion in the loan book to Sh130.28 billion.
Operating expenses decreased by 15.8 percent to Sh7.32 billion, primarily due to lower provisioning for loan defaults and reduced spending on staff.
Standard Chartered Bank Kenya's CEO, Kariuki Ngari, attributed the decline in loan impairment to the bank's efforts to ensure its portfolios are resilient to stress and supported by improving macroeconomic variables.
Staff costs also declined by 3.7 percent to Sh3.21 billion, reflecting the savings from the voluntary early retirement programme that reduced the number of employees.
