Chartered Bank Kenya Limited First Half of the year Profit before Tax up by 50 Per Cent to KShs 14.5 billion

22 August 2024 Nairobi, Kenya – Standard Chartered Bank Kenya Limited has today released its results for the period ended 30 June 2024.

Kariuki Ngari, Chief Executive Officer, said:“We delivered a strong set of results for the first half of the year with profit before tax up 50 per cent to KShs 14.5 billion. Our top-line recorded growth of 25 per cent, supported by continued momentum that saw strong growth in Non funded income ( NFI) from increased transactional volumes, as well strong net interest income. Good cost discipline has enabled us to generate significantly positive cost-income jaws of 16 per cent. Our business remains well capitalised, highly liquid with a high-quality funding mix which has allowed us to support clients during the period. We continue to actively manage our credit portfolio, remaining alert to a volatile and changing

environment.”

Summary financial performance

– Operating income increased by 25 per cent driven by;

– Net interest income increase of 19 per cent due to volume growth and improved margins.

– Non-interest income increase of 36 per cent from increased transactional volumes.

– Operating expenses were up 9 per cent primarily from increased staff costs and continued

investment in digital capabilities.

– Loan impairment charge decreased by 23 per cent on the back of improved portfolio metrics and culmination of many years of actively working with clients to manage the difficult operating environment.

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The balance sheet remains strong and highly liquid.

– Net loans and advances to customers decreased by 8 per cent from 31 December 2023

primarily on account foreign currency revaluation on the back of a strengthening Kenya Shilling.

Asset quality continued to improve with non-performing loans ratio down to 8.4 per cent from

9.7 per cent as at 31 December 2023.

– Customer deposits decreased by 19 per cent as a result of foreign currency revaluation on the back of a strengthening Kenya Shilling as well as a reduction of local currency deposits.

Funding quality remains high with current and savings accounts making up to 96 per cent of total customer deposits.

– The liquidity ratio at 63.2 per cent remains well above the regulatory threshold of 20 per cent.

– Total capital ratio of 18.87 per cent is above the regulatory minimum and well positioned to

continue supporting our strategy execution.

Dividend

On the back of the strong performance, the Directors are pleased to announce the payment of an interim dividend of KShs 8.00 for every ordinary share of KShs 5.00 to be paid to shareholders on the register as at the close of business on 18 September 2024 and will be paid on or about 8 October 2024. The Board recognises the importance of dividends to shareholders and remains committed to sustainable shareholder returns.

Concluding remarks

We have delivered a strong financial performance in the first half of the year, achieving these results by focusing on our clients and solving for them.

While we are conscious of the external macroeconomic headwinds, both global and local, we

believe we have the right strategy and are uniquely positioned to take advantage of the growth opportunities that arise while proactively managing the risks .

Finally, I would like to acknowledge the remarkable efforts of all colleagues for their dedication in doing the right thing for clients. Their impressive dedication to serving our clients and impacting our communities reinforces our brand promise of here for good.