StanChart first quarter profit up 44 pc on high interest income

Standard Chartered Bank. The bank has announced a 44.4 per cent growth in its net profit for the first three months to March. PHOTO | FILE |

By  NEVILLE OTUKI

What you need to know:

  • The NSE-listed lender booked an after-tax profit of Sh2.6 billion in the first quarter compared to Sh1.8 billion in a similar period a year earlier.
  • The bank recorded a rise in gross non-performing loans to Sh15.4 billion from Sh8.3 billion

Standard Chartered Bank has announced a 44.4 per cent growth in its net profit for the first three months to March, lifted by increased interest income.

The NSE-listed lender booked an after-tax profit of Sh2.6 billion in the first quarter of the year compared to Sh1.8 billion in a similar period a year earlier.

“The first quarter performance has been strong, reflecting good results from the actions taken during 2015 to improve income trends,” the bank said in a statement Tuesday. The jump in net earnings is the largest among top-tier banks that have announced their first quarter results.

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Equity Group posted a 10.7 per cent net profit growth in the first three months to Sh4.2 billion, KCB Group grew by 12 per cent to Sh4.3 billion while Co-operative Bank booked a 29 per cent growth in net earnings to Sh3.17 billion.

StanChart’s interest income grew to Sh6.4 billion in the review period from Sh5.4 billion despite the loan book shrinking by Sh5.4 billion to Sh109.7 billion.

“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,” it said. Customer deposits jumped by Sh12.5 billion to Sh184.5 billion.

The bank recorded a rise in gross non-performing loans to Sh15.4 billion from Sh8.3 billion in the review period, but the loan loss provision remained almost flat at Sh728 million.

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