Standard Chartered Bank Kenya has today released its results for the year ended 31 December 2024.
Kariuki Ngari, Managing Director and Chief Executive Officer, said: “We delivered a record performance in 2024 with profit before tax up 43 per cent driven by strong topline growth, good business momentum and excellent execution of our strategy of combining differentiated cross-border capabilities for corporate and institutional clients with leading wealth management solutions for affluent clients. We managed our costs well delivering significant positive income-to-cost jaws of 13 per cent”.
Summary financial performance
- Operating income increased 21 per cent driven by:
- Net interest income increase of 13 per cent due to volume growth and improved margins.
- Non-interest income increase of 40 per cent from increased transactional volumes and margins in Transaction Services, Markets and Wealth Solutions.
- Operating expenses were up 8 per cent primarily from increased inflationary pressure and continued investment spend into transformational digital initiatives.
- Impairment losses on loans and advances reduced 30 per cent from recoveries and robust management of the loan book.
The balance sheet remains strong, highly liquid and well capitalised;
- Net loans and advances to customers declined 7 per cent from 31 December 2023 primarily on account of foreign currency revaluation on the back of a strengthening Kenya Shilling and reduced client utilisation.
- Similarly, customer deposits were down 14 per cent as a result of reduction in customer balances and foreign currency revaluation on the back of a strengthening Kenya Shilling.
- The liquidity ratio at 67.59 per cent remains well above the regulatory threshold of 20 per cent.
- Total capital ratio of 19.55per cent is above the regulatory minimum.
Dividend
The Board will be recommending to the shareholders at the forthcoming Annual General Meeting, the payment of a final dividend of KShs 37.00 for every ordinary share of KShs 5.00. An interim dividend of KShs 8.00 was declared and paid in October 2024. This will bring the total dividend for the year to KShs 45.00 per ordinary share which is 55 per cent higher than 2023 dividend.
Also Read: Standard Chartered Kenya’s CEO on Supporting Startups and Empowering Women in Tech
