NAIROBI, Kenya, Dec 9-Standard Chartered Bank has issued a profit warning for the financial year ending December 31, 2020.
In a statement, the bank’s board chair Patrick Obath said the forecast has been influenced by economic challenges experienced in the country owing to the outbreak of the disease.
“It has been a challenging year with the protracted health pandemic and economic crisis and against this backdrop, SCBK’s current performance forecast indicates a substantial decline in the profit after tax for the year ending 31 December 2020 compared to the prior year, ” said Obath.
However, the bank says its balance sheet has remained robust with strong capital and liquidity throughout the period.
The board further anticipates that clients’ demand will increase over the course of 2021 as the Kenyan and global economies open.
“With the recent announcements of COVID-19 vaccines, global business sentiment has improved,” reads the firm statement.
In 2019, Standard Chartered Bank Kenya posted a pre-tax profit of Sh 12.2 billion at a time when the bank recorded increased use of digital services.
The bank also saw an increase in its loan and advances to customers since December 31 2018 which increased 8 percent to Sh129 billion while the gross non-performing loans reduced 7 percent year-on-year.
The bank’s Operating expenses increased by 8 percent due to increased investments in technology.