This archive report was first published on 20 November 2019.
Published on November 20, 2019, Standard Chartered Bank Kenya (SCBK) Limited reported a slight fall in net earnings to KSh 6.2 billion for the nine-month period ending September 30, 2019.
The London-based lender's earnings, listed at the Nairobi Securities Exchange (NSE), declined due to a drop in Total Interest Income, which fell from KSh 20.3 billion in Q3 2018 to KSh 19.1 billion in Q3 2019.
Interest income from Government Securities decreased from KSh 9.5 billion in Q3 2018 to KSh 8.1 billion at the end of September 2019, while Other Interest income declined from KSh 514.5 million to KSh 140.2 million.
However, the lender experienced a rise in staff costs from KSh 5.1 billion to KSh 5.6 billion during the same period.
Despite this, the Balance Sheet size of the lender grew from KSh 288.6 billion to KSh 294.5 billion, with customer deposits increasing marginally from KSh 288.6 billion in September 2018 to KSh 294.5 billion at the end of the third quarter of the financial year.
Net loans and advances to customers increased to KSh 118.5 billion in Q3 2019 from KSh 111.0 billion over a similar period last year.
Analysts predict that the ripple effects of a slowing economy and the impact of the rate cap law, which has since been repealed, hit the bottom lines of more lenders in the third quarter.
