Bank mulls paying Sh6 per share
Standard Chartered has proposed a Sh6.00 dividend per share after its profits after tax in the nine months to September 2022 rose to Sh8.7 billion.
During that period, income increased 10 per cent due to growth in asset volumes, expansion in net interest margins, and favourable market movements.
“We have delivered a strong performance in the nine months ended 30 September 2022 with profit before tax increasing 38 per cent year on year. Healthy business momentum continues to drive growth with income up 10 per cent,” Chief Executive Officer Kariuki Ngari said.
Costs increased 9 per cent because of inflationary pressure as well as investment spend, even as credit losses which have significantly reduced year-on-year.
“I am also pleased to announce that the Board approved the payment of an interim dividend of Sh6.00 to our ordinary shareholders,” Ngari said.
Operating expenses were up 9 percent to Sh11.6 billion reflecting the impact of inflation, increase in amortisation charges as well as increased investment spend on digital capabilities.
Loan impairment declined by 77 per cent benefitting from improved delinquencies as the economic environment continues to rebound.
The bank said its asset quality remained stable however but risk remains due to a volatile external environment.
Net customer loans and advances were up 8 per cent to Sh136 billion reflecting the recovery of our clients’ businesses. Interest income rose 7 per cent to Sh15 billion.
Customer deposits continued to grow with funding quality remaining high. Current and savings accounts made up 93 per cent of total customer deposits.
“We continue making inroads in our sustainability agenda and are making good progress. We will continue to focus on executing our strategy, investing in areas of our competitive strength, and supporting our clients and communities,” said the bank in a press statement.