Standard Chartered Bank Kenya Posts Ksh 15.84 Billion Net Profit in Q3 2024

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Standard Chartered Bank Kenya has posted a net profit of Ksh 15.84 billion for the third quarter of 2024, marking a 62.7% increase from the Ksh 9.74 billion achieved in the same period last year.

Kariuki Ngari, CEO for Standard Bank Kenya, attributed the strong performance to the bank’s strategic focus on revenue growth and cost optimization. “We have delivered a strong performance in the third quarter with profit before tax up 64% driven by strong topline growth, and well managed costs.” he remarked.

He further expressed optimism about the economic outlook for Q4, citing declining interest rates, falling inflation, and a stable currency as signs of an improving macroeconomic environment. Ngari emphasized the bank’s readiness to support clients in achieving their growth objectives as the year concludes.

“The balance sheet remains strong and highly liquid with our liquidity ratio at 65 per cent (regulatory minimum 20 per cent) and total capital ratio remains strong at 21 per cent,” he added.

Standard bank’s total revenue grew by 32.7% to Ksh 39.07 billion, driven by significant improvements in both interest and non-interest income. Net interest income rose by 17.0% to Ksh 24.84 billion, while non-interest income surged by an impressive 73.5%, reaching Ksh 14.23 billion compared to Ksh 8.20 billion in Q3 2023. Total assets increased marginally by 0.3%, reaching Ksh 370.94 billion.

One of the most notable achievements was the sharp decline in gross non-performing loans (NPLs), which dropped by 48.45% to Ksh 12.14 billion, down from Ksh 23.56 billion in Q3 2023 and Ksh 24.03 billion in Q3 2022. This reduction brings NPL levels to their lowest since 2015.

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Customer loans grew by 5.4% to Ksh 151.28 billion, demonstrating the bank’s commitment to expanding credit access. However, customer deposits fell by 4.8% to Ksh 284.42 billion, leading to a loan-to-deposit ratio of 53.2%.

Operational efficiency continued to improve, with total operating expenses rising by a modest 5.4% to Ksh 16.60 billion. The cost-to-income ratio declined to 37.5%, the lowest in over a decade.