Standard Chartered Bank shareholders will get a dividend of Sh22 per share following a 34 percent increase in net profits to Sh12.1 billion.
The lender declared final dividends of Sh16 for the 2022 financial year in addition to the interim dividend of Sh6 paid in December 2022.
The profit growth was attributed to reopening of businesses after the COVID-19 pandemic, which fuelled demand for loans, and an increase in lending rates.
Standard Chartered Chief Financial Officer Chemutai Murgor, said that in the period under review loans and advances to customers was up 11 per cent to Sh134 billion, reflecting increased business activities by clients.
“Non-interest income increased 18 percent to Sh22.2 billion due to favourable market movements and strong performance in the Wealth Management business,” said Chemutai.
The improvement in market performance also saw operating expenses increased six percent to Sh34 billion reflecting the impact of inflation as well as increased investment spend on digital capabilities.
Deposits from customers grew by five per cent to Sh279 billion while funding quality remained high with current and savings accounts making up 93 per cent of total customer deposits.
“Our wealth management, transaction banking and financial markets products performed strongly,” said the lenders Chief Executive Officer Kariuki Ngari
He said the discipline around expenses helped the bank navigate the inflationary pressures of 2022 but still allowed it room to invest in digital capabilities.
Compared to the year ended 31 December 2021, net interest income increased 18 per cent due to asset volumes growth and expansion in net interest margins as interest rates rose.
Impairment losses on financial instruments declined by 47 percent benefitting from improved delinquencies as the economic environment improved.
Going forward the bank says it will leverage on technology to scale up Mass Retail business.
“We see a $40billion (Sh5.1 trillion) investment opportunity in Kenya to achieve the Sustainable Development Goals 6,7 and 9 by 2030.” added Ngari.
