Standard Chartered Bank Kenya has reported a 20.1 percent growth in its profit after tax for the nine months ended September, boosted by the sale of a property and cut in interest on savings.
The bank’s profit after tax grew to Sh8.2 billion ($91 million), from Sh6.8 billion ($75.4 million) reported during the same period last year.
StanChart’s customers were paid Sh2.2 billion ($24.4 million) on their Sh164 billion ($1.8 billion) savings, compared to Sh2.5 billion paid on Sh144 billion deposits last year. It however increased customer savings by Sh20 billion in the three months through September, the fastest growth recorded among the larger banks in Kenya.
“Net interest income grew by eight per cent driven by strong growth in volumes but weighed down by the significantly lower interest rates charged in line with falling interest rates in the market,” Business Daily quoted StanChart chief executive Lamin Manjang, as saying.
The bank’s non-interest income grew 21 percent to Sh6.5 billion. The growth was however due to the sale of one of its properties. Without the property sale, on-interest income was down 8 percent as income from its forex trading dropped.
The bank announced a Sh4.50 ($0.05) interim dividend for its shareholders, a development from last year when it did not pay interim dividend. It however made a final payout of Sh14.50.
StanChart’s stock traded at Sh334 per share on the Nairobi Securities Exchange.