StanChart posts record Sh12.1 billion profit on good returns from wealth management

StanChart Bank is set to pay shareholders a final dividend of Kes16 for the year ended December 2022 bringing to a total pay out of Kes22 a piece after the lender’s net profit surged by 34 percent to close the period at Kes12.1 billion on strong performance of wealth management units. The lender paid an interim dividend of Kes6 in December.

The Nairobi Securities Exchange-listed company paid Kes19 in total dividends for the year ended December 2021.

Income from StanChart’s wealth management unit soared with assets under management edging up 13 percent to Kes148 billion in the year ended December 31.

In the trading period marked by a rebound of the economy as the Covid-19 pandemic waned, the bank’s operating profit grew by 16 percent to Kes34 billion even as operating expenses swelled by 8 percent to Kes15.6 billion.

Our wealth management, transaction banking, and financial markets performed strongly, CEO Kariuki Ngari noted, while lauding the lender’s discipline on expenses, especially on digital capabilities that saw the bank navigate inflation pressures in 2022.

“Our costs were up 8 percent in comparison to the double-digit growth in income of 16 percent, enabling us to deliver a strong income-to-cost jaw of 8 percent,” Mr Ngari noted.

Stanchart loans and advances went up by 11 percent to Kes139.4 billion on account of the improving business climate in the country even as deposits edged up by 5 percent to Kes278.9 billion with savings accounts constituting 93 percent of the total customer deposits recorded in the year.

“Loans and advances to customers were up 8 percent reflecting the recovery of our clients’ businesses,” Chief Financial Officer Chemutai Murgor explained.

Non-interest income increased by 13 percent due to favourable market movements and strong performance in the wealth management unit of the bank.

““We will reinforce our strong credentials in the Affluent segment and Wealth Management,” the CEO noted.

The lender’s investments in technology have continued to bear fruit as the bank seeks to leverage on technology to scale up our mass retail business. Currently, about 97 percent of Stanchart’s service offerings are available via self-serve digital channels.

With assets growing by 13.85 percent to Kes381.26 billion, Ms Murgor says Stanchart’s balance sheet remains strong and highly liquid. “Asset quality remained stable, however, we continue to be alert to a volatile external environment.”

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