StanChart Profit Surges 48% on Higher Lending, Fees Revenue

AFRICAN STOCKS AND FINANCEAugust 26, 2024 at 12:28 PM UTC

TLDR

Standard Chartered Bank Kenya records a 48.8% net profit increase in the first half of 2024, reaching Sh10.28 billion driven by higher fee and loan interest income.
Bank declares a substantial interim dividend of Sh8 per share, a notable increase from Sh6 per share in the previous financial year 2023.
The total dividend payout of Sh3.02 billion is set with the books closing on September 18, 2024, and payment scheduled for around October 8, 2024.

Standard Chartered Bank Kenya reported a 48.8% increase in net profit for the first half of 2024, reaching Sh10.28 billion ($80 million), driven by higher income from fees and interest on customer loans.

In response to the profit surge, the bank declared an interim dividend of Sh8 per share, a significant increase from the Sh6 per share issued in the 2023 financial year.

The total dividend payout will amount to Sh3.02 billion, with the books closing on September 18, 2024, and payment scheduled for around October 8, 2024.

Key Takeaways

In the first half of 2024, Kenyan banks have reported higher income from lending, primarily due to elevated lending rates in the economy. This increase follows the Central Bank of Kenya's (CBK) decision to raise the base lending rate from 12.5% in December 2023 to 13% in February 2024, to control high inflation and stabilize a volatile exchange rate. The rate remained at 13% until earlier this month when the CBK's monetary policy committee slightly reduced it to 12.75%. In contrast, during the first half of 2023, the base rate was maintained between 8.75% and 9.5%.

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