Standard Chartered Bank Kenya Reports 45% Surge in Net Profit to Sh20.1bn, Increases Dividend Payout
Standard Chartered Bank Kenya has announced a 45% increase in its net profit for the year ending December 31, 2024, reaching Sh20.1 billion, up from Sh13.8 billion in 2023. The bank’s strong performance has resulted in a record dividend payout, with shareholders set to receive Sh45 per share, a significant increase from the Sh29 per share paid in 2023.
The bank's financial report, presented to investors in Nairobi on Wednesday, outlined a total dividend distribution of Sh13.9 billion. This includes a final dividend of Sh37 per share, after an interim dividend of Sh8 per share was paid out in October 2024.
The robust growth in net profit was largely attributed to a 21% rise in total income, which reached Sh17.4 billion, compared to Sh12.4 billion the previous year. Non-interest income saw the most significant growth, rising by 40% to Sh17.4 billion, driven by strong performance in transaction services, markets, and wealth solutions. On the other hand, net interest income grew more modestly by 13%, reaching Sh33.3 billion.
The bank effectively managed its operating costs, with total expenses rising by 8% to Sh20.1 billion, from Sh18.7 billion in 2023. Loan impairment costs also decreased, falling to Sh2.4 billion from Sh3.4 billion last year.
However, net loans and customer advances declined by 7%, mainly due to the impact of a stronger Kenya Shilling and lower client utilization. Similarly, customer deposits fell by 14%, influenced by a reduction in customer balances and foreign currency revaluation.
Despite these declines, the bank's liquidity remains strong, with a ratio of 67.59%, well above the regulatory minimum of 20%. Its total capital ratio also stands at a healthy 19.55%, exceeding the required threshold.
The positive results highlight Standard Chartered Bank Kenya's solid financial position and its commitment to delivering value to shareholders while maintaining strong capital and liquidity buffers.