StanChart stock jumps 5.7% on dividend news

Standard Chartered Bank Kenya’s shares recorded a significant uptick on Tuesday, becoming one of the top gainers at the close of trading on the Nairobi Securities Exchange.

This surge followed the announcement of a dividend windfall for the year ended December 2023 earlier in the day. The shares closed trading at Kes170.5, ranking fourth among the top gainers, after Sanlam Kenya, Nairobi Ventures Ltd, and Williamson Tea, which posted gains of 7.1 percent, 6.7 percent, and 6.4 percent, respectively.

On Tuesday, StanChart announced a 15 percent increase in dividend for the full year ended December 2023, attributing it to a strong performance that saw its profit rise by 14.76 percent to Kes13.84 billion.

The Board declared a full-year dividend of Kes29 per share for the year under review, up from Sh22 per share in the previous year.

This comprises an ordinary dividend of Kes23 per ordinary share for the year, in addition to the Sh6 interim dividend issued in December, representing a dividend payout ratio of 80 percent.

StanChart’s financial disclosures revealed a 31.96 percent increase in net interest income to Kes29.32 billion, along with a non-performing loan (NPL) ratio of 9.7 percent as of December 2023.

Standard Chartered Bank Results for the FY ended December 2023.

Read also: StanChart woos Kenyan investors to seize global prospects

Loan book expansion

The bank’s loan book also expanded to Kes163.16 billion, marking a notable year-on-year growth of 17.04 percent.

However, impairment losses on loans and advances increased by Kes2.1 billion, reflecting the bank’s active management of the credit portfolio.

Net interest income at the bank, which is controlled by Standard Chartered PLC, rose by close to a third, StanChart’s Chief Financial Officer, Chemutai Murgor said, adding that overall revenue grew by almost a quarter.

The lender noted that Europe and US continues to be its largest contributor to cross-border growth corridors having registered 73 percent rise in cross-border income to Kes17.1 billion in 2023.

We registered highly profitable growth with the Europe corridor contributing 45 percent of income, explained Murgor.

Despite the positive financial performance, StanChart’s expenses rose by 20 percent, largely due to a Kes2.2 billion increase in staff costs and investments.

Looking ahead to 2024, the bank’s CEO, Kariuki Ngari, expressed confidence in the bank’s ability to navigate both positive tailwinds and negative headwinds, citing its strong position to support customers and communities amidst evolving economic conditions.

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