, NAIROBI, Kenya, Nov 21 – Standard Chartered Bank has today announced a seven percent increase in pre-tax profit to Sh9.9 billion for the nine months ended 30 September from Sh9.2 billion recorded same period last year.
Total income increased by nine percent to Sh17.6 billion from Sh16.1 billion recorded same period last year with loans and advances up by 22 percent to Sh123.6 billion.
Net interest income grew by 14.5 percent to Sh12.3 billion from Sh10.7 billion driven by strong growth in volumes but impacted by the significantly lower interest rates charged in line with falling interest rates in the market;
Non interest income decreased by two percent to Sh5.3 billion from Sh5.4 billion recorded same period last year largely due to a decrease in income from foreign exchange dealings which was down eight percent to Sh1.8 billion.
The company says the decrease in foreign exchange income was as a result of decreased volatility in foreign exchange rates in the current period as compared to the same period last year.
“This was however moderated by an increase in fee and commission income which was up 15 percent to Sh2.9 billion from Sh2.5 billion in 2012,” the company said in a statement.
Net bad debt charge increased from Sh654 million to Sh775 million and is in line with the growth in our loans and advances portfolio.
Total operating costs grew by 12 percent to Sh7.7 billion from Sh6.9 billion driven by continued investment in infrastructure, technology and talent to support our business growth.
Loans and advances increased by 22 percent to Sh123.6 billion from Sh101.6 billion recorded same period last year while customer deposits increased by six percent to Sh144.5 billion from Sh134 billion last year.
The company’s investment in government securities increased to Sh55.2 billion from Sh42.7 billion ast year on the back of significant growth in customer deposits and overall growth in the balance sheet boosted by the capital injection through the rights issue and profit retentions.
Standard Chartered Bank Managing Director Richard Etemesi says that Business momentum has continued to pick pace in the second half of 2013 promted by a stable macroeconomic environment and a upward business confidence.
“We remain confident in the outlook for the business for the rest of 2013, Our costs are six percent and two percent lower than what we achieved in Q1 2013 and Q2 2013 respectively as we focus on driving cost efficiencies across the business,” he said.