Standard Chartered reported its earnings for the first half of the year 2024, revealing a set of strong results. The lender’s profit before tax for the period under review was 14.5 billion, a 50% year-on-year increase.
Operating income grew by 25%, on the back of increased interest and non-interest income. Net interest income increased by 19% while non-interest income grew by 36%.
Operating expenses increased by 9% primarily due to the bank’s expansion of digital capabilities and increased staff costs. The bank’s loan impairment charge was reduced by 23% driven by improved portfolio metrics.
In addition, net loans and advances to customers dropped by 8% for the six months driven by the strengthening of the Kenya Shilling.
For the first six months of 2024, customer deposits dropped by 15% because of the Kenyan shilling’s gain against the US dollar and the drop in local currency deposits.
Good cost discipline has enabled us to generate significantly positive cost-income jaws of 16 percent. Our business remains well-capitalized and highly liquid with a high-quality funding mix which has allowed us to support clients during the period. We continue to actively manage our credit portfolio, remaining alert to a volatile and changing environment,” the bank’s CEO Kariuki Ngari said.
“We have delivered a strong financial performance in the first half of the year, achieving these results by focusing on our clients and solving for them,” he added.
SBCK’s shareholders will receive an interim dividend of Kshs 8 for every ordinary share following the strong results.
