StanChart declares interim dividend as gaining 46pc

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StanChart declares interim dividend as gaining 46pc


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A branch of the StanChart bank in Nairobi. PHOTOS | NMG

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Summary

  • Standard Chartered Bank Kenya reported net profit growth of 46.6% in the nine months ended September, thanks to lower costs and higher non-interest income.
  • Its net earnings in the period under review stood at Sh6.3 billion, compared to Sh4.3 billion the previous year.
  • StanChart declared a surprise interim dividend of Sh5 per share, signaling its confidence in the economic outlook as it lifted most restrictions aimed at curbing the spread of the Covid-19 pandemic.

Standard Chartered Bank Kenya #ticker: SCBK reported net profit growth of 46.6% in the nine months ended September on the back of lower costs and higher interest income.

Its net earnings in the period under review stood at Sh6.3 billion, compared to Sh4.3 billion the previous year.

StanChart declared a surprise interim dividend of Sh5 per share, signaling its confidence in the economic outlook as it lifted most restrictions aimed at curbing the spread of the Covid-19 pandemic.

“The directors are delighted to announce the payment of an interim dividend of Sh5 for each common share,” the lender said in a statement.

“The board recognizes the importance of dividends to shareholders and believes in balancing returns with transformative investments for the company, while preserving strong capital ratios.”

The dividend will be paid on December 29 to shareholders who will be registered as of December 7.

The bank was among the major lenders including KCB #ticker: KCB and Absa Bank Kenya #ticker: ABSA who had suspended their tradition of paying dividend advances as the health crisis unfolded.

StanChart’s interim dividend indicates that its total payment for the year ending December could exceed the 2020 distribution of Sh10.5 per share. The bank’s interest income rose 19.1 percent to Sh 7.5 billion, thanks to improved performance in wealth management and financial markets.

Total interest income fell 2.4% to shillings 17.5 billion as the bank reduced its investment in government debt and left its loan portfolio unchanged.

Its holding of government bonds fell 8.1 percent to Sh94 billion while customer loans only moved to Sh131.7 billion.

StanChart benefited from a five percent drop in operating expenses to Sh13.3 billion, helped in part by falling personnel costs from Sh552.1 million to Sh4.8 billion.

The bank has shrunk its workforce over the years due to a deeper push in digital banking.

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