Standard Chartered Bank of Kenya posted a 43 per cent rise in first quarter net profit, driven by higher revenues from retail banking business.
The bank’s profit after tax closed at Sh2.58 billion for the period ended March 31 from Sh1.8 billion in a similar period last year, it reported yesterday.
Total interest income went up 18 per cent to Sh6.4 billion.
“The first quarter performance has been strong reflecting good results from the actions taken during 2015 to improve income trends,” CEO Lamin Manjang said in a statement yesterday.
The bank, controlled by London-listed Standard Chartered Plc attributed the performance to business boost in retail banking, which posted a 22.9 per cent growth. The growth in retail banking was driven by increased uptake of mortgages and lending to small businesses.
The bank's financial report shows insider loans and advances grew to Sh5.8 billion for the period under review, up from Sh5.2 billion in a similar period in 2015.
“The double digit income and operating profit growth is testament that we are doing the right things across a balanced scorecard of growth, performance, cost control and risk management. Our underlying business volumes generally remain strong, and we are rebuilding the balance sheet with good quality assets,” Manjang said.
Retail banking segment contributed 44 per cent of total income.
Gross non-performing loans increased marginally by 4.8 per cent from December 2015 to
Sh15.4 billion, the bank noted yesterday.
“Customer loans and advances are down 4.6 per cent as we continue to focus on disciplined balance sheet management and more selective asset origination,” he said