Standard Chartered Bank Kenya Limited reports a 36% increase in profit before tax for 2022

Standard Chartered Bank Kenya Limited has released its results for the year ended 31 December 2022. The bank’s profit before tax increased by 36% and business momentum drove top-line growth of 16%. The bank’s Wealth Management, Transaction Banking and Financial Markets products performed strongly. The bank’s discipline around expenses helped it navigate the inflationary pressures of 2022 but still allowed it room to invest in its digital capabilities. The bank’s costs were up by 8% in comparison to the double-digit growth in income of 16%, enabling it to deliver a strong income-to-cost jaw of 8%

Kariuki Ngari, Chief Executive Officer, said: “We have delivered a strong set of results in 2022, with profit before tax up by 36 per cent, with business momentum driving top-line growth of 16 per cent. Our Wealth Management, Transaction Banking and Financial Markets products performed strongly. I am particularly pleased with our discipline around expenses which helped us navigate the inflationary pressures of 2022 but still allowed us room to invest in our digital capabilities. Our costs were up by 8 per cent in comparison to the double-digit growth in income of 16 per cent, enabling us to deliver a strong income-to-cost jaw of 8 per cent.” 

The bank’s operating income increased by 16%. Within this, net interest income increased by 18% due to asset volume growth and expansion in net interest margins as interest rates rose. Non-interest income increased by 13% due to favourable market movements and strong performance in the Wealth Management business. Operating expenses increased by 8% reflecting the impact of inflation as well as increased investment spending on digital capabilities. Underlying credit metrics improved as the economic conditions stabilised and impairment losses declined by 38%

Loans and advances to customers was up 11% reflecting increased business activities by the bank’s clients. Deposits from customers continued to grow, up by 5% and funding quality remains high with current and savings accounts making up 93% of total customer deposits.

Summary financial performance

All commentary that follows is in comparison to the year ended 31 December 2021.

• The operating income increased by 16 per cent. Within this: 
• Net interest income increased by 18 per cent due to asset volumes growth and expansion in net interest margins as interest rates rose. 
• Non-interest income increased by 13 per cent due to favourable market movements and strong performance in the Wealth Management business. 
• Operating expenses increased 8 per cent reflecting the impact of inflation as well as increased investment spending on digital capabilities. 
• Underlying credit metrics improved as the economic conditions stabilised and impairment losses declined by 38 per cent.

Asset quality remained stable. However, the bank continues to be alert to a volatile, unpredictable and challenging external environment.

• Loans and advances to customers were up 11 per cent reflecting increased business activities by our clients.
• Deposits from customers continued to grow, up by 5 per cent and funding quality remains high with current and savings accounts making up 93 per cent of total customer deposits.

Standard Chartered Bank Kenya Limited had a strong business momentum in 2022 and is well-positioned to navigate an uncertain external environment in 2023, which is likely to remain complex due to global headwinds. The Bank will continue to focus on executing its strategy, invest in areas of competitive strength, and support and protect the well-being of its clients, colleagues, and communities.

Finally, the CEO acknowledged the dedication of the Bank’s colleagues whose deep expertise combined with commitment has delivered seamless service to the Bank’s customers and communities, bringing to life the Bank’s brand promise to be Here for Good.

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