StanChart Kenya reports 14% jump in full-year earnings

Standard Chartered Bank Kenya Limited has announced a 14% increase in profit after tax in its full-year results for the year ending on December 31, 2023. The bank, a top-tier lender, has attributed this positive performance to a clear strategic focus and seizing opportunities in a challenging operating environment. In an interview with CNBC Africa, CEO Kariuki Ngari discussed the key drivers behind the bank's success and its outlook for the future. Ngari highlighted that the bank experienced a 23% revenue growth, with net interest income up by 32% and asset growth increasing by 17%. Despite facing external pressures such as inflation and operational challenges, the bank managed to maintain positive results, with a 15% growth in profit before tax and profit after tax. As a result, the bank plans to issue a final dividend of 20% per share, totaling a 29% dividend for the 2023 full year. Ngari pointed out that loan advances were up by 17% and deposits grew by 23%, indicating strong performance in both corporate and consumer segments. He expressed optimism about sustaining this growth in the future, citing improving macroeconomic conditions and increased availability of US dollars. Ngari also addressed the impact of the Central Bank's decision to raise interest rates, emphasizing the need to address inflation and stabilize the Kenyan shilling. He predicted a potential easing of interest rates in the second quarter of 2024, reflecting a more favorable economic environment. Looking ahead, Ngari outlined the bank's growth priorities for the next quarter, focusing on economic recovery, lending expansion, and supporting sectors like manufacturing and tourism. He highlighted a strategic shift towards green financing, with a commitment to investing in sustainable initiatives and mobilizing global capital for climate transition projects. The bank aims to continue leading in sustainable finance and driving positive environmental impact. In conclusion, Standard Chartered Bank Kenya's strong financial performance amidst external pressures underscores its resilience and strategic focus. With a clear growth strategy and a commitment to sustainability, the bank is well positioned to navigate challenges and capitalize on emerging opportunities in the Kenyan market.