Standard Chartered Bank Kenya has reported a 36% increase in pre-tax profit for the year 2022, highlighting the bank’s resilience amidst a challenging economic environment. The bank’s performance was boosted by growth in net interest income, as well as an increase in non-interest income.
The bank’s financial results for the year ended 31 December 2022 show that pre-tax profit rose to KES 13.4 billion ($123.4 million), up from KES 9.8 billion ($90.4 million) the previous year. This increase is a testament to the bank’s focus on strategic priorities such as digital transformation, cost optimization, and business diversification.
Standard Chartered Bank Kenya’s CEO, Kariuki Ngari, credited the bank’s strong performance to its ability to adapt to changing market conditions and customer needs. “We remain committed to investing in technology and innovation to provide our clients with superior service and grow our business sustainably,” he said.
The bank’s net interest income, which is the difference between interest earned from loans and interest paid to depositors, increased by 9% to KES 22.3 billion ($205.7 million) in 2022. This growth was driven by an increase in average interest-earning assets and a reduction in funding costs. The bank’s net interest margin, which is a measure of profitability, also improved from 6.3% in 2021 to 6.6% in 2022.
Standard Chartered Bank Kenya has reported a 36% increase in pre-tax profit for the year 2022, highlighting the bank’s resilience amidst a challenging economic environment. The bank’s performance was boosted by growth in net interest income, as well as an increase in non-interest income.
The bank’s financial results for the year ended 31 December 2022 show that pre-tax profit rose to KES 13.4 billion ($123.4 million), up from KES 9.8 billion ($90.4 million) the previous year. This increase is a testament to the bank’s focus on strategic priorities such as digital transformation, cost optimization, and business diversification.
Standard Chartered Bank Kenya’s CEO, Kariuki Ngari, credited the bank’s strong performance to its ability to adapt to changing market conditions and customer needs. “We remain committed to investing in technology and innovation to provide our clients with superior service and grow our business sustainably,” he said.
The bank’s net interest income, which is the difference between interest earned from loans and interest paid to depositors, increased by 9% to KES 22.3 billion ($205.7 million) in 2022. This growth was driven by an increase in average interest-earning assets and a reduction in funding costs. The bank’s net interest margin, which is a measure of profitability, also improved from 6.3% in 2021 to 6.6% in 2022.
In addition to net interest income, Standard Chartered Bank Kenya’s non-interest income also increased by 16% to KES 13.7 billion ($126.4 million) in 2022. Non-interest income includes fees and commissions earned from services such as trade finance, cash management, and investment banking. This increase was driven by growth in trade finance and wealth management services.
The bank’s cost-to-income ratio, which measures the amount of expenses incurred for every KES 1 of revenue generated, improved from 55.3% in 2021 to 51.7% in 2022. This improvement is a result of the bank’s focus on cost optimization and operational efficiency.
Standard Chartered Bank Kenya’s total assets increased by 10% to KES 368.8 billion ($3.4 billion) in 2022, up from KES 335.5 billion ($3.1 billion) in 2021. This growth was driven by an increase in loans and advances to customers, which rose by 11% to KES 188.3 billion ($1.7 billion) in 2022.
The bank’s loan book is well diversified, with exposure to various sectors of the economy such as manufacturing, agriculture, and services. This diversification has helped the bank to manage credit risk and maintain a healthy loan portfolio.
Standard Chartered Bank Kenya’s customer deposits also increased by 8% to KES 260.7 billion ($2.4 billion) in 2022, up from KES 241.9 billion ($2.2 billion) in 2021. The bank’s deposit base is well diversified, with a mix of retail, corporate, and institutional deposits.
The bank’s capital adequacy ratio, which measures its ability to absorb losses, remained strong at 20.1% in 2022, well above the regulatory requirement of 10.5%. This indicates that the bank has sufficient capital to support its business growth and absorb potential losses.
Standard Chartered Bank Kenya’s strong financial performance in 2022 is a testament to its resilience and ability to navigate a challenging economic environment.
