Standard Chartered Bank Kenya's net earnings for the first three months of 2022 rose to Sh2.7 billion up from Sh2.3 billion same period last year, a 16 per cent growth.
The lender attributed the growth to rising interest income and a drop in loan impairments.
StanChart's operating income increased five per cent to Sh7.4 billion from strong performance in net interest income, financial markets and wealth management.
“Our first-quarter performance was strong despite volatile and challenging market conditions underlying business momentum. Asset quality remained resilient in the first quarter,” Standard Chartered Bank chief executive officer Kariuki Ngari said in a statement.
He said the bank will continue adopting new strategies to cope with the challenging external environment.
Net interest income increased seven per cent to Sh4.9 billion due to higher asset volumes and lower customer deposits cost of funds.
Operating expenses grew by nine per cent to Sh3.5 billion from Sh3.2 billion.. This was attributed to increased investment spending on transformational digital initiatives including partnerships.
Loan impairment declined by 121 per cent reflecting the impact of a release in management overlays, primarily relating to Covid-19.
Customer deposits remained flat from December 31, 2021 at Sh265 billion.
Net loans and advances to customers increased two per cent from December 31, 2021 while asset quality remained stable.
The bank’s liquidity ratio at 72 per cent remains well above the regulatory threshold of 20 per cent while the total capital ratio stood at 17.62 per cent.
Banks in the country are expected to continue with their growth trajectory this quarter as characterised by heir full year earnings.
Equity Bank, NCBA and Stanbic banks have already reported growth in their quarter one net profits.
Equity reported a 36 per cent growth to Sh11.86 billion while NCBA Bank recorded Sh3.6 billion in net earning, a 20 per cent growth.
Stanbic Bank Kenya announced a 15.7 per cent growth in net earnings for the first three months of the year.
The lender's net profit grew Sh2.1 billion compared to Sh1.8 billion same period last year.
Stanbic bank's balance sheet grew to Sh331.03 billion up from Sh317 billion a year ago.
