Standard Chartered Banks’s net profit for the first quarter to 31st March 2021 grew 18 percent to hit Sh2.39 billion.
In the results released yesterday, the lender’s operating income increased by 2 per cent from strong performance in Wealth Management. Net interest income declined 3 per cent due to lower volumes and lower average yields. Non-interest income increased 11 per cent with strong performances in Wealth Management and Financial Markets. Operating expenses were down 10 per cent with underlying efficiencies funding investment in transformational digital initiatives. Loan impairment declined by 4 per cent reflecting the impact of improvements in the macroeconomic variables.
“Our first quarter performance was strong with profit after tax improving 19 per cent buoyed by positive business momentum leading to improved transaction volumes particularly in Wealth Management, low credit impairment charges and operating cost efficiencies. Asset quality remained resilient and stable in the first quarter, although we continue to remain alert to the continued impact of COVID-19,” said Kariuki Ngari, Standard Chartered Bank CEO.
Customer deposits increased 3 per cent since December 2020. Funding quality remained high with current and savings accounts making up 88 per cent of total customer deposits.
On the other hand, net loans and advances to customers decreased 3 per cent. Asset quality remained resilient and stable in the first quarter, although we continue to remain alert to the continued impact of COVID-19 and the likelihood of uneven recovery across industry segments.
The lender’s liquidity ratio at 74.70 per cent remains well above the regulatory threshold.