Standard Chartered Records a 19% Growth in Net Profit in Q12021
Standard Chartered Bank Kenya has reported a 19% growth in net profit in the first three months to March 31 2021. The lender posted an improvement in net profit of Kes 2.39 billion at the end of March 2021, compared to a net profit of Kes 2.01 billion posted during the same period in 2020.
The growth that rose to the pre-COVID-19 levels was attributed to the slashing of operational costs resulting from cutting its staff members by 200 in November last year. Operating expenses dropped by 15% to Kes 4.595 billion at the end of Q1 2021, from Kes 5.383 billion in the same period in 2020.
The rise Standard Chartered in net profit in the first quarter of 2021 was supported by an improvement in non-interest income and a decline in operating expenses. Non-interest income rose to Kes 2.00 billion in the first quarter of 2021, from Kes 1.91 billion in the same period in 2020. However, the bank’s interest income fell by 9% to Kes 5.56 billion in March 2021 from Kes 6.10 billion in March 2020.
“Our first quarter performance was strongly buoyed by positive business momentum leading to improved transaction volumes particularly in wealth management, low credit impairment charges and operating cost efficiencies. Asset quality remained resilient and stable in the first quarter, although we continue to remain alert to the continued impact of COVID-19.” Standard Chartered CEO Kariuki Ngari said.
Income in the Nairobi securities listed firm rose marginally by 1.4 % to Kes 7.1 billion. Total non-interest funded income grew to Kes 2.5 billion from Kes 2.2 billion, compensating an 8.2 % drop in total interest income to Kes 5.6 billion.
The bank’s customer deposits increased to Kes 265.2 billion in the first three months of 2021 from Kes 243.6 billion in the same period last year. Loans and advances to customers dipped to Kes 117.9 billion in Q1 2021 from Kes 125.5 billion in Q1 2020.
The lender posted an 11% rise in bad loans in the period under review. Its gross non-performing loans jumped to Kes 22.3 billion at the end of March 2021 from Kes 20.02 billion at the end of March 2020.