- The profit growth is so far the highest among the listed lenders that have announced their profits.
- StanChart’s earnings were boosted by a 55 per cent drop in its loan loss provisions to Sh2.2 billion, which reduced its operating expenses bill.
- Gross non-performing loans grew by Sh341 million to Sh15 billion.
Standard Chartered Bank of Kenya Tuesday shrugged off the effects of the interest rate caps to post a 42.7 per cent increase in net profit for 2016.
The rise in profit was helped by additional lending to government and lower cost of bad loans.
The lender has reported net earnings of Sh9.05 billion for year to December, compared to the Sh6.34 billion a year earlier.
StanChart’s profit growth is so far the highest among the listed lenders that have announced their profits.
KCB Group reported a near-flat net profit in the period, while Barclays dropped 12 per cent, Equity’s declined 4.1 per cent while Co-op Bank and DTB Bank improved 8.2 per cent and 17 per cent respectively.
Banks blame their sluggish growth in earnings to the coming into force of the interest-capping law enacted last September, with most shying away from offering personal and SME loans due to their relatively higher risk profile.