NAIROBI, Kenya – Standard Chartered Bank Kenya has reported a 45 per cent jump in net profit to Sh20.1 billion for the year ending December 31, 2024, allowing shareholders to enjoy a record Sh45 per share dividend, up from Sh29 in the previous year.
The bank’s latest financial results, released in Nairobi on Wednesday, show that earnings surged from Sh13.8 billion in 2023 on the back of higher non-interest income and cost management measures.
Standard Chartered will distribute Sh13.9 billion in total dividends, marking one of the highest payouts in the banking sector.
Shareholders will receive Sh37 per share in final dividends, adding to the Sh8 per share interim dividend paid in October 2024.
The strong earnings performance was fueled by a 21 per cent rise in total income to Sh50.7 billion, driven by a 40 per cent growth in non-interest income to Sh17.4 billion.
The lender attributed this surge to strong transaction services, market gains, and wealth solutions, supported by an optimized trading book.
Net interest income, on the other hand, grew at a slower 13 per cent to Sh33.3 billion, reflecting tighter lending conditions.
The bank contained operating expenses, which increased by only eight per cent to Sh20.1 billion despite inflationary pressures.
Additionally, it slashed loan impairment costs to Sh2.4 billion, down from Sh3.4 billion in 2023, indicating improved loan quality and reduced credit risk.
However, the lender’s loan book shrank by seven per cent, largely due to foreign currency revaluations following a strengthening Kenya Shilling and lower client loan utilization.
Customer deposits also dipped by 14 per cent due to similar revaluation effects and reduced client balances.
Despite these shifts, Standard Chartered maintains a strong liquidity ratio of 67.59 per cent, well above the regulatory 20 per cent threshold.
The total capital ratio stands at 19.55 per cent, exceeding regulatory minimums, reinforcing the bank’s financial resilience.
With a focus on diversifying income streams, Standard Chartered aims to expand its transaction services, digital banking solutions, and wealth management offerings to sustain profitability.
The lender’s ability to navigate currency fluctuations and economic shifts has positioned it among Kenya’s best-performing banks in 2024.
