Standard Chartered full-year profit falls by 34 per cent to Ksh.5.4 billion


Standard Chartered full-year profit falls by 34 per cent to Ksh.5.4 billion

In Summary

  • The significant profit decline is largely attributable to falling income streams and higher operating costs triggered by a raised cover for loan defaults.
  • Stan-Chart’s total operating income for instance fell to Ksh.26.8 billion from a higher Ksh.28.9 billion a year earlier on the back of decelerating interest and non-interest funded income (NFI).
  • Nevertheless, the lender has shrugged the dip to recommend the payment of a Ksh.10.50 dividend per share which nears the 2019 diluted Ksh.12.50 per share payout, and bolstered by the bank’s liquid position which sits at a high 71.5 per cent.

Standard Chartered Bank has reported a 34.1 per cent profit decline for the year closing in December 2020 with earnings plunging to Ksh.5.4 billion from Ksh.8.2 billion in 2019.

The significant profit decline is largely attributable to falling income streams and higher operating costs triggered by a raised cover for loan defaults.

Stan-Chart’s total operating income for instance fell to Ksh.26.8 billion from a higher Ksh.28.9 billion a year earlier on the back of decelerating interest and non-interest funded income (NFI).

Net interest income was down 2.1 per cent to stand at Ksh.19.1 billion while NFI fell by 9.8 per cent to Ksh.8.3 billion.

At the same time, the lender raised its loan provisions to Ksh.3.9 billion from a low Ksh.572.6 million to push non-interest expenses up by 21.2 per cent to Ksh.20 billion.

Standard Chartered further registered a mixed bag of balance sheet evolution with customer loans and advances falling to Ksh.121.5 billion from Ksh.128.7 billion.

The bank’s total assets nevertheless surged by 7.8 per cent to Ksh.325.6 billion.

Subsequent to the profit deceleration, the bank’s earnings per share has fallen to Ksh.13.95 from Ksh.21.35.

Nevertheless, the lender has shrugged the dip to recommend the payment of a Ksh.10.50 dividend per share which nears the 2019 diluted Ksh.12.50 per share payout, and bolstered by the bank’s liquid position which sits at a high 71.5 per cent.

During the year, the bank restructured loans amounting to Ksh.26 billion or an equivalent 21 per cent of its loan book to help stem the growth of its non-performing loans (NPLs) by 10.9 per cent to Ksh.22.3 billion.

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Story By Kepha Muiruri
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