Standard Chartered Bank Kenya #ticker:SCBK has announced a 17 per cent jump in net profit to Sh8.1 billion, putting it on track with other tier-one lenders whose earnings for the year to December 2018 have risen.
The profit, a rise from previous year’s Sh6.9 billion, was supported by growth in both interest and non-interest income as costs reduced on less loan loss provisioning.
“We are investing in exciting new digital and other transformative initiatives, and our strengthened risk discipline is paying off.
“We are determined to drive commerce and help our clients achieve prosperity in a sustainable manner,’’ CEO Kariuki Ngari on the performance.
Total interest income increased by 2.3 per cent to Sh26.87 billion, hugely supported by interest from government securities.
Non-interest income, largely generated from fees and commission was up 4.6 per cent to Sh9.2 billion.
Operating costs dropped by three per cent to Sh16.7 billion as the bank cut loan loss provisioning by 54 per cent to Sh1.93 billion.
This continues the trend that has been seen with banks such as KCB, Stanbic bank and Cooperative bank, all having trimmed their provision for toxic debt.
The onset of International Financial Reporting Standard saw many banks choose to pass their non-performing loans (NPLs) through reserves as opposed to the income statement.
Loans and advances to customers declined by six per cent to Sh119 billion compared to Sh126 billion at the end of 2017.
The board says that this was in bid to improve asset quality. However, gross NPLs rose by 23 per cent to Sh21.7 billion.
Against this performance, the board has recommended to shareholders the payment of a final dividend of Sh14 per ordinary share. An interim dividend of Sh5 per share was paid last year.
The total dividend therefore will be Sh19, surpassing the Sh17 per share payout of the previous year.
Holders of preference shares, usually non-redeemable and non-voting, will receive dividend at the rate of six per cent on the issue price of each share.
“The board recognises the importance of dividends to shareholders, and believes in balancing returns with investment to support future growth, whilst at the same time preserving strong capital ratios,” said Mr Ngari.
Treasury Releases Funds to Counties Showing Acceptable Plans to Clear Pending Bills
A statement from the National Treasury shows that 18 counties that showed acceptable plans to clear pending bills received reimbursements for November.
Acting Treasury CS, Ukur Yattani, says that the 18 counties received Ksh. 11 billion.
The counties include; Baringo, Bomet, Embu, Garissa, Isiolo, Kiambu, Kirinyaga, Kitui, Machakos, Meru, Migori, Mombasa, Nandi, Narok, Taita Taveta, Tana, Tharaka Nithi, Vihiga.
A further Ksh.7 billion was disbursed to 12 counties that had cleared their pending bills. These include; Elgeyo Marakwet, Homabay, Kajiado, Kericho, Kilifi, Kwale, Laikipia, Makueni, Nyamira, Nyandarua, Nyeri, Uasin Gishu.
Kenyan to Steer Dalberg as Global Managing Partner
Dalberg Advisors has announced the appointment of Edwin Macharia as Global Managing Partner for a 3-year term. Edwin term commences on 1 January 2020 and succeeds Yana Kakar who had been at the helm since 2013.
Prior to his appointment, Edwin has been with Dalberg for 11 years serving various roles. For instance, he founded Dalberg’s first office in East Africa in 2008, established Agriculture and Food Security Practice, and serves two terms as the Regional Director for Africa.
“Edwin has spearheaded a lot of innovation into the new business lines within the Group. That will serve him well as he steps forward to lead Dalberg’s biggest and longest-standing business” noted Henrik Skovby, Dalberg’s Founder.
Dalberg Advisors is a global consulting firm specializing in inclusive and sustainable business, policy, and investment strategy. Moreover, the firm combines strategy consulting, design thinking, big data analytics, and research to address complex social and environmental challenges.
Kericho feted for clean audit : The Standard
The Public Sector Accounting Standards Board (PSASB) has feted Kericho County Assembly for emerging best in the county assemblies’ category during the Financial Reporting (FiRe) Awards held last month.
PSASB Chief Executive Officer Fredrick Riaga, who spoke in Kericho this week, rooted for systems that guarantee sound financial reporting.
He urged other devolved units to follow suit. “Kericho County got a clean audit report on their 2018/2019 financial statement from the Office of the Auditor General.
Similarly, upon evaluation for the Financial Reporting Award by our team of experts the assembly also topped in its category,” he said.
“This is a clear indication of the value of effective financial reporting in promoting devolution in the larger public finance management reforms.”
Kericho County Assembly Speaker Dominic Rono said other counties were keen to know how the clean audit status was achieved.
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