Standard Chartered Bank Kenya has reported a net profit of KSh20 billion for the 2024 financial year, showing a 45 percent increase compared to the KSh13.8 billion it made in 2023. This strong profit was achieved even though the bank’s total assets reduced within the same period. The rise in profit was supported mainly by higher earnings from interest on loans and strong performance in foreign exchange trading.
According to the bank’s financial results, its net interest income rose by 13 percent, climbing to KSh33.27 billion from the previous year. This was made possible by more lending activities and better margins. Non-interest income, which includes income from transaction services and wealth management, also went up significantly by 40 percent to KSh17.41 billion. This jump was driven by an increase in the number of transactions and better profit margins in different service areas, including foreign exchange markets.
Kariuki Ngari, the Chief Executive Officer of Standard Chartered Bank Kenya, said the performance was a result of the bank’s decision to focus on cross-border banking services for corporate and institutional clients, as well as advanced wealth management services for high-net-worth customers. He also pointed out that the bank was able to manage its expenses effectively, achieving a 13 percent income-to-cost gap, which means that income grew much faster than costs.
Even with the profit increase, the bank’s balance sheet showed a decline. Total assets dropped from KSh429.6 billion in 2023 to KSh384.57 billion in 2024. Also, customer deposits reduced by 14 percent to KSh295.69 billion, while loans and advances to customers fell by 7 percent to KSh151.65 billion. The bank said these reductions were mainly caused by the appreciation of the Kenyan Shilling against other currencies, and lower borrowing activity by some of its clients.
Despite this, the bank’s financial health remains strong. It reported a liquidity ratio of 67.59 percent, far above the Central Bank of Kenya’s required minimum of 20 percent. Its total capital ratio was also solid at 19.55 percent, showing that the bank has a strong buffer to cover any potential losses.
Thanks to its impressive profit, Standard Chartered Bank Kenya announced a record dividend payment of KSh45 per share to its shareholders. This is a 55 percent increase from the previous year. Altogether, the total dividend payout will be KSh13.9 billion.
Looking ahead, the bank said it will keep investing in its Corporate Investment Business and its Wealth and Retail Banking segment. The bank is also putting more money into digital banking and personalised wealth solutions to attract and retain customers, as the financial services sector becomes more competitive.
Standard Chartered Bank Kenya says it is ready to deal with future challenges, including currency fluctuations and changing customer habits. The bank’s focus on digital transformation, risk management, and client satisfaction is expected to help it maintain its position in the East African banking space.
