Standard Chartered Bank has recorded a 37 percent growth in its net profit for the nine months to September boosted by increased interest income and lower loan loss provisions.
The bank earned Sh8.8 billion in profit after tax during the period up from Sh6.3 billion it earned in a similar period last year.
Its interest income grew 7 percent to Sh15.7 billion from Sh14.7 billion while non-funded income grew 16 percent to Sh8.7 billion up from Sh7.5 billion.
The lender was also boosted by a 77 percent reduction in loan loss provision which dropped to Sh621 million from Sh2.6 billion.
Operating expenses, however, went up 9 percent reflecting the impact of inflation, increase in amortisation charges as well as increased investment spending on digital capabilities.
Net customer loans and advances grew by 8 percent attributed to the recovery of the lender’s clients’ businesses, while customer deposits grew by a similar margin to Sh286 billion up from Sh265.5 billion.
“We have achieved this performance by actively supporting our clients in an increasingly unpredictable operating environment,” said Standard Chartered Chief Executive Kariuki Ngari.
“We continue making inroads in our sustainability agenda and are making good progress. We will continue to focus on executing our strategy, investing in areas of our competitive strength, and supporting our clients and communities,” said Mr Ngari.
The bank is the latest lender to post impressive nine-month results underlining a positive economic environment despite runaway inflation.
Banks have recorded a 28.5 percent increase in profit before tax for the nine months to September driven by significant growth in interest and non-funded income as well as the rollout of cost-cutting measures.
Data from the Central Bank of Kenya (CBK) shows banks earned Sh187 billion in profit before tax during the nine-month period, which is Sh41.5 billion more than the Sh145.5 billion that they earned during a similar period last year.
