Standard Chartered Bank Kenya Limited today released its results for the year ended 31 December 2021 recording the highest profits in 5 years.
Kariuki Ngari, Chief Executive Officer, said: “2021 was an exceptional year for the Bank despite the ongoing pandemic driven challenging conditions with profit before tax improving 70 per cent. Income returned to growth after the dip last year occasioned by the impact of the pandemic, increasing 7 per cent with strong underlying business momentum. We continue to transform how we serve our customers through innovations, partnerships and digitisation whilst maintaining a tight control on expenses with underlying efficiencies funding continual investment. Loan loss provision reduced as we worked closely with our clients to support them manage through the pandemic. The Bank remains well capitalised, with a highly liquid balance sheet, with total capital ratio of 17.76 per cent and a liquidity ratio of 71 per cent respectively.”
Summary financial performance
All commentary that follows is on comparisons made to the year ended 31 December 2020.
Total operating income increased 7 per cent. Within this:
- Net interest income decreased 2 per cent with increased volumes more than off-set by lower average yields. The lower yields were however partially mitigated by lower cost of funds on the interest-bearing liabilities.
- Non-interest income increased 25 per cent with strong performances in Wealth Management and Financial Markets.
- Operating expenses decreased 10 per cent with underlying efficiencies funding investment in transformational digital initiatives.
- Credit impairment declined 46 per cent to KShs 2.1 billion and the overall portfolio remains stable and resilient. The Bank is well-positioned to support their clients as the local and global economies recover but remains vigilant to the impact of the Russian invasion of Ukraine on economic recovery, continued impact of COVID-19 – which although considerably reduced, emergence of new variants could lead to new downsides.
- Basic earnings per share increased by KShs 9.54 / 68 per cent.
- A final dividend per ordinary share of KShs 14.00 has been proposed which, together with the interim dividend paid in December 2021, brings the total ordinary dividend per share for the year to KShs 19.00 – an 81 per cent year-on-year growth.
The balance sheet remains strong and highly liquid.
- Loans and advances to customers increased 4 per cent. Asset quality remained stable.
- Customer deposits increased 4 per cent. Funding quality remains high with current and savings accounts making up 91 per cent of total customer deposits.
- The liquidity ratio at 71 per cent remains well above the regulatory threshold of 20 per cent.
- The total capital ratio of 17.76 per cent is above the regulatory minimum and within our capital risk appetite.
