|
Kenya’s Standard Chartered Bank pre-tax profit for period ended December 2007 rose 28.86% to stand at Ksh.4.9 billion compared to Ksh3.8 billion at the end of 2006. The increase in profitability was mainly attributed to rising customer deposits and a drop in charges on bad debts.
The multinational bank has exhibited rapid growth asset and profits over the recent few years. Total income in 2007 grew by 21 percent to Ksh.9.6 billion, compared with the previous year. Net interest income grew to Ksh.5.6 billion, up 11% from Ksh.5.04 billion at the end of 2006. Customer deposits grew by 14% to Ksh.73.8 billion in 2007.
Standard Chartered Kenya’s total operating costs for 2007 rose by 23% to Ksh.4.4 billion compared to the previous year due to increased staff costs and investment in infrastructure and technology. The bank’s charges on net bad debts fell by 52% to Ksh.250 million, down from Ksh.520 million in 2006.
The bank’s earnings per share rose to Ksh.12.14, compared with Ksh.9.07 in 2006, and a dividend of 10.00 shillings per share was recommended, compared with 8.50 shillings per share in 2006.
Standard Chartered bank management indicated concerned that their 2008 earnings could be adversely affected by the post-election crisis. The bank is however confident that it would surpass its 2007 growth, but in addition to the political situation, the bank also faced a challenge of competition from other banks and non-financial banking institutions.
The bank plans to open four new branches countrywide in 2008.
Financial Statements
|
Standard Chartered Bank (K) LTD Group’s Profit & Loss statement
|
|
|
PERIOD ENDING 31st DECEMBER 2007
|
31-Dec-07
|
31-Dec-06
|
%Change
|
|
|
KES’ 000
|
KES’ 000
|
|
|
INTEREST INCOME
|
|
|
|
|
Loans and advances
|
4,209,733
|
3,818,236
|
10.25%
|
|
Government securities
|
2,211,107
|
2,388,456
|
-7.43%
|
|
Deposits and placements with banking institutions
|
517,040
|
220,380
|
134.61%
|
|
Other interest income
|
184,771
|
183,120
|
0.90%
|
|
Total interest income
|
7,122,651
|
6,610,192
|
7.75%
|
|
|
|
|
|
|
Interest Expenses
|
|
|
|
|
Customer deposits
|
1,395,273
|
1,465,267
|
-4.78%
|
|
Deposits and placements from banking institutions
|
132,187
|
105,379
|
25.44%
|
|
Other interest expenses
|
-
|
-
|
|
|
|
|
|
|
|
Total Interest Expenses
|
1,527,460
|
1,570,646
|
-2.75%
|
|
|
|
|
|
|
Net interest Income
|
5,595,191
|
5,039,546
|
11.03%
|
|
OTHER OPERATING INCOME
|
|
|
|
|
Fees and commissions income on loans and advances
|
404,063
|
393,636
|
2.65%
|
|
Other fees and commissions
|
1,681,738
|
1,577,539
|
6.61%
|
|
Foreign exchange trading income
|
1,261,278
|
849,247
|
48.52%
|
|
Dividend income
|
-
|
-
|
|
|
Other income
|
651,359
|
88,464
|
636.30%
|
|
Total non-interest income
|
3,998,438
|
2,908,886
|
37.46%
|
|
|
|
|
|
|
Total operating income
|
9,593,629
|
7,948,432
|
20.70%
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
Loan loss provision
|
250,249
|
520,212
|
-51.89%
|
|
Staff costs
|
2,507,488
|
1,780,869
|
40.80%
|
|
Directors emoluments
|
83,950
|
119,986
|
-30.03%
|
|
Rental charges
|
174,990
|
142,687
|
22.64%
|
|
Depreciation on property and equipment
|
156,566
|
144,770
|
8.15%
|
|
Amortization charges
|
12,172
|
15,959
|
-23.73%
|
|
Other expenses
|
1,498,026
|
1,413,522
|
5.98%
|
|
Total operating expenses
|
4,683,441
|
4,138,005
|
13.18%
|
|
|
|
|
|
|
Profit before tax and exceptional items
|
4,910,188
|
3,810,427
|
28.86%
|
|
|
|
|
|
|
Exceptional items
|
-
|
-
|
|
|
Taxation
|
|
|
|
|
Current tax
|
-1,589,422
|
-1,148,103
|
38.44%
|
|
Deferred tax
|
149,111
|
-28,024
|
|
|
|
|
|
|
|
Profit after tax and exceptional items
|
3,469,877
|
2,634,300
|
31.72%
|
|
|
|
|
|
|
Minority Interest
|
-
|
-
|
|
|
|
|
|
|
|
Profit attributed to shareholders
|
3,469,877
|
2,634,300
|
31.72%
|
|
|
|
|
|
|
Earning Per Share (KES.)
|
12.14
|
9.07
|
33.85%
|
|
Dividends per share (KES.)
|
10.00
|
8.50
|
17.65%
|
|
Standard Chartered Bank (K) LTD Group’s Balance Sheet
|
|
|
|
|
PERIOD ENDING 31st DECEMBER 2007
|
31-Dec-07
|
31-Dec-06
|
%Change
|
|
|
KES’ 000
|
KES’ 000
|
|
|
ASSETS
|
|
|
|
|
Cash (local and foreign)
|
3,214,132
|
1,595,056
|
101.51%
|
|
Balance due from Central bank of Kenya
|
4,331,931
|
3,987,489
|
8.64%
|
|
Kenya Government securities
|
24,492,271
|
27,651,320
|
-11.42%
|
|
Foreign Currency Treasury Bills and Bonds
|
-
|
-
|
|
|
Deposits and balances due from banking institutions (Local)
|
507
|
568
|
-10.74%
|
|
Deposits and balances due from banking institutions (Foreign)
|
199,465
|
164,794
|
21.04%
|
|
Kenya Government and other securities held for dealing purposes
|
2,754,036
|
538,186
|
|
|
Tax recoverable
|
-
|
77,425
|
|
|
Loans and advances to customers (net)
|
39,468,522
|
35,762,284
|
10.36%
|
|
Investment securities
|
-
|
-
|
|
|
Balance due from group companies
|
7572774
|
7,485,599
|
1.16%
|
|
Investment in associates
|
-
|
-
|
|
|
Investment in subsidiary company
|
-
|
-
|
|
|
Investment properties
|
-
|
-
|
|
|
Property and equipment
|
1,055,033
|
872,055
|
20.98%
|
|
Prepaid leases rentals
|
213,695
|
218,311
|
-2.11%
|
|
Intangible assets
|
3,778
|
11,334
|
-66.67%
|
|
Deferred tax asset
|
230,952
|
64,347
|
|
|
Retirement Benefit Asset
|
-
|
147,000
|
|
|
Other assets
|
7,584,846
|
2,438,355
|
|
Management commentary
Dividends
The Board has resolved to recommend to Shareholders at the forthcoming Annual General Meeting, the payment of a final dividend for the year of Ksh. 5.00 for every ordinary share of Ksh. 5.00. Two Interim dividends of Ksh. 2.50 each 00 for every ordinary share of Ksh. 5.00 were paid in September and December 2007. The total dividend is Ksh. 10.00 (2006 –Ksh. 8.50)
The dividend will be payable to shareholders registered on the Company’s Register at the close of business on 3rd April 2008 and will be paid on or after22 May 2008.
The Directors are also pleased to announce the payment of the final dividend on the non-cumulative, non-redeemable, non- participating, non-voting and non-convertible shares for the period 30 June to 30 December 2007 at the rate of 6% per annum on the issue price of each share.
The Register will remain closed on 4th April 2008 for the preparation of dividend warrants.
AGM
Notice is hereby given that the twenty second Annual General Meeting of the Shareholders of the Company will be held at the Kenyatta International Conference Centre on Thursday, 22 May 2008 at 11 am.
Note
The above Profit and Loss Account and Balance sheet are extracts of financial statements audited by KPMG Kenya .To get a full picture of the Group’s performance , the set of published financial statements will be available fro the Company’s Secretary at our offices at Stanbank House Moi Avenue, after approval by members at the AGM.
The financial statements were approved by the Board of Directors on 28th February 2008 and signed on behalf by:
D.G. Njoroge Chairman
R.M. Kimani Area General Manager East Africa and CEO Kenya |
Discussion
No comments for “Standard Chartered Bank FY07 Profit before Tax up 29%”
Post a comment