StanChart Q1 posts 41pc growth

May 17, 2012

, NAIROBI, Kenya, May 17- Standard Chartered Bank has announced a 41 percent pretax profit jump in its first quarter of 2012 to Sh3.3 billion, with its total income rising 33 percent to Sh5.5 billion. The bank’s Chief Executive Officer Richard Etemesi attributed the good performance to the benefits of sticking to a clear and consistent strategy; of investing for growth; of disciplined management of capital, liquidity, costs and risks. “We have continued to invest in both our businesses. Consumer banking income momentum has continued while Wholesale Banking has also had a strong start to the year with a record performance in client income, contributing significantly to the total Wholesale Bank income,” said Etemesi. The Bank’s loans and advances grew by 41 percent to Sh96.5 billion due to growth in both consumer and corporate assets. On the other hand, customer deposits grew by 17 percent to Sh118.6 billion. The net bad debt charge however reduced from Sh135.5 million in the first quarter of 2011 to Sh134.3 million in the first quarter of 2012. “In the last one year, our total non-performing loans have remained flat at Sh1.2 billion despite significant growth in loans and advances and remain among the lowest in the market. This translates to 1.3 percent of gross total loans compared to 1.8 percent in the first quarter of 2011, a reflection of our prudent approach to lending and proactive risk management capability”, said Etemesi. The Bank’s cost income ratio has decreased to 38 percent in the first quarter of 2012 compared to 40.4 percent in the same period in 2011. On the outlook for the rest of the year, Etemesi said, the bank will remain vigilant about the global outlook and the uncertainties within the political and economic environment in Kenya.

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