Standard Chartered – Q1 2022 Results

Standard Chartered Bank Kenya Limited today releases its results for the quarter ended 31 March 2022.

Kariuki Ngari, Chief Executive Officer, said:

“Our first quarter performance was strong despite volatile and challenging market conditions. Our profit before tax grew 16% year-on-year with strong underlying business momentum. Income increased by 5% with a strong performance in net interest income, Financial Markets and Wealth Management. Expenses increased 9% mainly due to digital investments as we continue to transform how we serve our clients. Asset quality remained resilient in the first quarter however we continue to remain alert to the challenging external environment. The Bank remains well capitalised and highly liquid with a total capital ratio of 17.62% and a liquidity ratio of 71.56%.”

Summary financial performance

• Operating income increased 5% from strong performance in net interest income, Financial Markets and Wealth Management;
• Net interest income increased 7% due to higher asset volumes and lower customer deposits cost of funds;
• Non-interest income was flat with continued positive momentum in Wealth Management and Financial Markets off-set by lower fee income;
• Operating expenses were up 9% from increased investment spend into transformational digital initiatives including partnerships;
• Loan impairment declined by 121% reflecting the impact of a release in management overlays, primarily relating to COVID-19.

The balance sheet remains strong and highly liquid.

• Net loans and advances to customers increased 2% from 31 December 2021. Asset quality remained stable.
• Customer deposits remained flat from 31 December 2021 at KShs 265 billion. Funding quality remains high with current and savings accounts making up 92% of total customer deposits.
• The liquidity ratio at 72% remains well above the regulatory threshold of 20%.
• Total capital ratio of 17.62% is above the regulatory minimum and within our capital risk appetite.

Concluding remarks

The start to 2022 has been strong, however we continue to remain alert to the challenging external environment which has been elevated by Russian invasion of Ukraine, continuing cases of COVID-19 in China which is leading to logistical shipping challenges thus causing accelerated inflation globally. Against this backdrop, we will continue to focus on executing our strategy whilst pursuing sustainable growth.