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Standard Chartered bank net profit up 31 per cent

In Summary

•The bank’s profit after tax closed at Sh2.56 billion for the period ended March 31

The Standard chartered bank on Kenyatta avenue
The Standard chartered bank on Kenyatta avenue
Image: MONICAH MWANGI

Standard Chartered Bank Kenya posted a 31.28 per cent rise in net profit during the first quarter of the year attributed to improved solution offerings.

“Focusing on clients by providing them with solutions that support their businesses is starting to bear fruit as evidenced by our first quarter performance,” Standard Chartered Bank CEO Kariuki Ngari said.

The bank’s profit after tax closed at Sh2.56 billion for the period ended March 31 from Sh1.95 billion in a similar period last year, it reported on Tuesday.

The lender’s net interest income increased marginally by 2.68 per cent to Sh4.98 billion compared to the same period last year driven by a slow-down in average investment in government securities.

Non-funded income grew 5.75 per cent to Sh2.39 billion during the review period.

The bank's financial report shows loans and advances to customers grew by 3.26 per cent to Sh117.56 billion compared to the same period in 2018 while customer deposits grew by 0.34 percentage points to Sh232.77 billion.

During the quarter, gross non-performing loans expanded by 19.22 per cent to Sh21.21 billion.

“Loan impairment was 61 per cent lower than in the same period last year reflecting ongoing management action to improve overall asset quality,” the bank said.