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Standard Chartered profit rises to Sh9.3bn

STANDARD-CHARTEREDNAIROBI, Kenya, Mar 25 – Standard Chartered Bank Kenya Limited has recorded a 14.8 percent rise in net profit for the 2013 full year to Sh9.3 billion from Sh8billion in 2012.

CEO Lamin Manjang attributes the performance to growth in net interest income which increased by 18percent from Sh14.2 billion to Sh16.8 billion.

Interest income on loans and advances increased by 4percent to Sh15.5 billion driven by growth in volumes but impacted by significantly lower interest rates charged in line with falling interest rates in the market.

Interest income from investments in government securities increased by 36percent largely on account of increased volumes.

“In 2013, we continued on the path of sustained growth, strong financial performance and excellent strategic progress,” Manjang said.

Shareholders will now take home a dividend of Sh14.50 compared to Sh12.50 paid in 2012.

“This dividend payout gives us the right balance between bolstering our capital base to enable us pursue growth in loans and advances, continue to deliver attractive returns to our investors as well as ensuring we meet the enhanced capital requirements,” the CEO said.

Total operating expenses increased by 11percent to Sh9.5 billion with one of the key drivers being staff costs which went up by 10percent to Sh5.1 billion. Other costs increased by 14percent to Sh2.5 billion in line with increased operating costs, “including deposit protection fund cost, expenses such as security, advertising, among others.”

The bank’s total capital stood at Sh30.7 billion compared Sh23.9 billion in 2012.

“I would say that going forward we are well and right now we do not have any plans to go back to the market for a rights issue for additional capital. As an international bank we have some strength that we play to,” Manjang said.

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