StanChart posts 5.6 per cent pre-tax profit growth in first half of 2019

STANCHART BANK - StanChart posts 5.6 per cent pre-tax profit growth in first half of 2019
Profits rose to Sh6.9 billion compared to Sh4.5 billion during the same period last year/FILE

NAIROBI, Kenya, Aug 27 – The Standard Chartered Bank has posted a 5.61 per cent increase in pre-tax profit in its 2019 half-year performance.

Profits rose to Sh6.9 billion compared to Sh4.5 billion during the same period last year.

While announcing the results, the bank’s Chief Executive Officer Kariuki Ngari said the bank’s improved performance has been brought about by increased update in digital products in the organization.

“We have positioned ourselves to disrupt with digital, reinforce market leadership in wealth management and increase our cross-border network business as we support and grow with our clients,” he said.

The bank’s net interest income was at Sh9.84 billion brought about by compressed margins from capped interests.

Loans and advances to customers increased by 7.44 per cent to Sh120.06 billion as the bank’s deposits dropped by 1.02 percent to Sh228.5 billion.

The lender’s bad loan book grew 6.68 per cent to Sh19.79 billion as loan loss provisions increased by 10.86 per cent to Sh7.86 billion compared to the same period in 2018.

“Loan impairment was 70 percent lower than in the same period last year reflecting ongoing management actions to improve overall asset quality,” reads the statement released on Monday.

Investors’ earnings per share grew to Sh12.4 from Sh11.74 over the same period last year while the declared dividend per share stagnated at Sh5.

The announcement of the results come at a time when the bank has been ranked as the Best Consumer Digital Bank in Kenya in 2019.

According to the Financial Journal ‘Global Finance,’ the bank specifically stood out in its information security and fraud management systems covered under its digital platforms.

During the award ceremony, the institution’s Managing Director and Chief Executive Officer Kariuki Ngari said the bank will continue to leverage on technology.

“Digitalization to us means a disruption from traditional and conventional ways of banking to transforming banking business to conform to the lifestyles of our clients. We are glad these efforts have been recognized by our peers,” he said.

Author: worldwidenewscast

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