Kenya’s StanChart posts 23.7% jump in its pretax - CNBC Africa

Kenya’s StanChart posts 23.7% jump in its pretax


by Elayne Wangalwa 0

Kenyan lender Standard Chartered Bank has reported a 23.7 per cent increase. PHOTO: Standard Charted

The bank recorded an increased to 8.09 billion Kenyan shilling from 6.54 billion Kenyan shillings posted the same period last year.

The lender, a subsidiary of Standard Chartered Plc, attributed the remarkable performance to a higher net interest income. The bank’s net interest income climbed by 9 per cent to 8.8 billion Kenyan shillings during the first half of the year in comparison to the similar period in 2013.  While the total interest income rose to 10.9 billion Kenyan shillings from 10.42 billion Kenyan shillings.

The Nairobi Securities Exchange-listed bank performed well in the non-interest income segment which increased by 31 per cent to 5 billion Kenyan shillings mainly from the sale of a property.

“They [Standard Chartered] had a profit and that means they earned their revenues from non-interest incomes. We are looking at commissions from the ATMs and other commissions that they charged from their products,” Luke Mulunda, editorial consultant told CNBC Africa.

The bank which is Kenya’s most profitable foreign owned bank and the third most profitable bank in the country after Equity Group, has total assets which grew by 7 per cent to 228.8 billion Kenyan shillings.

StanChart’s loans and advances to customers grew by 11.2 per cent to 131.7 billion Kenyan shillings in June 2014 from 118.4 billion Kenyan shillings the previous period in 2013. While its loan book expanded by 11.2 per cent to 131.7 billion Kenyan shillings.

However, customer deposits fell by 13.7 per cent to 1.5 billion Kenyan shillings.

“When we look at Standard Chartered it is more of a high end kind of bank and when the customer is dropping, you will find that most of them may be the retail kind of client so they might not have a huge impact in terms of its interest income that is why you are seeing the drop in customer deposits,” Mulunda said.

The bank’s earnings per share rose to 19.54 Kenyan shillings in the first half from 14.58 Kenyan shillings.

Standard Bank Plc reported an overall strong growth in its African operations. The financial services provider posted a two per cent increase in group headline earnings to 66.4 billion Kenyan shillings.