Standard Chartered Bank Kenya net profit up 45% to Sh20.1bn Kenya eyes NSE

Standard Chartered Bank Kenya Shareholders will take home a final dividend of Sh45 per share up from Sh29 in 2023 after the lender posted a 45 per cent growth in net earnings for the year ended December 31, 2024.

The financial statement presented to investors in Nairobi on Wednesday shows it will pay a record dividend of Sh13.9 billion after its full-year profit rose to Sh20.1 billion compared to Sh13.8 billion in the previous year.

The bank has declared a dividend of Sh37 per share, taking a total final dividend payout for the period to Sh45 per share, after paying an interim dividend of Sh8 per share in October last year.

The growth in the bank’s net profit was largely driven by higher income, which rose 21 per cent to Sh17.4 billion from Sh12.4 billion.

Non-interest income grew the fastest at 40 per cent to Sh17.4 billion from Sh12.4 billion, while net interest income grew slower at 13 percent to Sh33.3 billion from Sh29.3 billion.

“Non-interest income was up 40 per cent driven by strong transaction services, markets and wealth solutions supported by a well-positioned trading book,” the bank said.

The bank kept a cover on costs, with total expenses rising by eight percent to Sh20.1 billion from Sh18.7 billion as the lender cut its loan impairment costs to Sh2.4 billion from Sh3.4 billion in 2023.

Net loans and customer advances declined seven per cent primarily because of foreign currency revaluation on the back of a strengthening Kenya Shilling and reduced client utilisation.

Similarly, customer deposits were down 14 per cent as a result of the reduction in customer balances and foreign currency revaluation on the back of a strengthening Kenya Shilling.

The liquidity ratio at 67.59 per cent remains well above the regulatory threshold of 20 per cent while the total capital ratio of 19.55 per cent is above the regulatory minimum.