Stanchart profit drops 5.8pc

March 4, 2009

, NAIROBI, Kenya, Mar 4 – Standard Chartered Bank Kenya has announced a 5.8 percent reduction in after tax profit for the year ending 2008.

The bank posted a Sh3.2 billion net profit compared to Sh3.4 billion for the same period in 2007.

 “The dip in profit is as a result of the sale of some of our shares in Visa International whose revenue was reflected in 2007 and an increase in costs due to major investments last year,” Standard Chartered Chief Executive Richard Etemesi explained.

He said the bank spent about Sh3.5 billion in infrastructure development and on staff in line with their business growth. 

 Total income for the bank went up to Sh10.2 billion compared to Sh9.6 billion in 2007 while operating costs were up 13 percent to Sh5 billion.

Loans and advances grew by 10 percent to Sh43.3 billion while earnings per share decreased marginally from Sh12.14 per ordinary share to Sh11.34 per share.

“The Board will be proposing to the shareholders in the forthcoming Annual General Meeting, the payment of final dividend of Sh5 for every ordinary share of Sh5.This will bring the total dividend for 2008 to Sh10 per ordinary share,” Mr Etemesi said.

The bank boss re-emphasised positive prospects for the bank despite the hard economic times globally.

 “At the moment we feel very confident that no matter what hit’s us we are ready for it because the actions we took last year in improving our business strategy should allow us increase our appetite for risk,” he said.

Standard Chartered becomes the first major bank in the country to report a dip in after tax profit for 2008. Kenya Commercial Bank, Barclays Bank and Equity Bank reported increases ranging from 38 percent to 107 percent.

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