StanChart 2019 full year after tax profit up 1.7 pc

StanChart Chief Executive Kariuki Ngari. PHOTO/COURTESY: Capital FM

Standard Chartered bank has recorded a 1.7 percent jump in after tax profit for the year ended December 2019 to Ksh. 8.24 billion up from Ksh. 8.1 billion recorded in a similar period in 2018.

The bank has attributed the marginal increase in after tax profit to reduced interest expenses and provisions against debt. In the period under review, Interest expenses dropped 22.40 percent to Ksh.5.8 billion, while loan loss provisions dipped 70.33 percent to Ksh.573 million.

“Our actions over the past few years to support our clients to improve the risk profile of the balance sheet and continued focus on high quality origination continue to pay off,” StanChart said in a statement.

Similarly, the bank’s net interest income grew by 0.39 percent to Ksh.19.47 billion helped by cheaper deposits on the back of lower returns on loans and government securities.

“We have achieved important milestones on our strategic priorities in 2019. Our investments to transform the bank digitally, develop and scale new business models, and build skills of strategic value to our clients continue apace,” StanChart CEO  Kariuki Ngari said.

In the first nine months of 2019 the bank posted a net profit of Ksh. 6.2 billion down from Ksh. 6.3 billion recorded in a similar period last year.

The bank attributed the marginal drop to the decision to maintain its current loan book, which stands at Ksh. 119 billion, in order to avoid the ballooning of non-performing loans (NPLs).

StanChart however highlighted the increased performance of its digital platform that handles approximately 80 percent of all consumer transactions at the bank.

“Our digital investments to transform the bank, develop and scale new business models continue apace. This has been positively received by our clients and key client digital adoption measures continue to improve. Close to 90 per cent of our corporate clients are utilising our Straight2Bank platform and over 20 per cent of Kenya Revenue Authority tax receipts are processed through our real-time Integrated Tax Payment solution,” the StanChart CEO explained then.

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