Standard Chartered Bank Kenya (SCBK) delivered a positive performance in 2023, capping off the year with a 15% increase in Profit Before Tax to KES 19.7 billion. This strong showing reflects the bank’s commitment to innovation and its ability to adapt to a dynamic economic landscape.
Highlights of SCBK’s 2023 Performance:
- Profit Before Tax: Up 15% year-on-year to KES 19.7 billion.
- Top Line Growth: Up 23% driven by strong business momentum and improved margins.
- Operating Income: Increased by 23%.
- Loans and Advances: Grew by 17%, indicating rising client demand.
- Customer Deposits: Increased by 23%, showcasing continued value proposition for clients.
- Dividend: Increased total dividend per share by 32% compared to 2022.
Breaking Down the Numbers:
SCBK’s top-line growth was fueled by a significant rise in both net interest income (up 32%) and non-interest income (up 6%). The growth in net interest income is attributed to an increase in asset volumes and improved margins, while the rise in non-interest income reflects growth in transactions, favorable market movements, and strong performance in wealth management.
Operating expenses grew by 20% in 2023. This increase is partly due to inflationary pressures but also reflects the bank’s strategic investment in bolstering its digital capabilities.
Despite a challenging macroeconomic environment, SCBK’s balance sheet remains robust. Loans and advances to customers climbed by 17%, demonstrating growing client demand. Moreover, asset quality improved significantly, with the non-performing loans ratio closing at a healthy 9.7%.
On the deposit side, customer deposits grew by a substantial 23%, with a high proportion (97%) being current and savings accounts. This highlights the bank’s success in attracting and retaining customer deposits.
Looking Forward:
The Board of Directors plans to recommend a final dividend payment of KES 23.00 per share for the year, bringing the total dividend to KES 29.00 per share, a 32% increase compared to 2022.
Standard Chartered Bank Kenya says they remain committed to continuous improvement and strategic execution. The bank acknowledges the ongoing economic pressures but assures its clients of continued support during these challenging times. Management also expressed gratitude to its employees for their dedication to serving clients and the community.
