Standard Chartered Kenya has announced a final dividend of Sh 37.00 per ordinary share for the financial year 2024 (FY 24), marking a strong end to an exceptional year. The proposed final dividend will be presented for approval at the upcoming Annual General Meeting (AGM). This comes in addition to the Sh 8.00 interim dividend paid in October 2024, bringing the total dividend payout to Sh 45.00 per share, a 55% increase compared to FY 23.
The Standard Chartered Kenya final dividend FY 24 will result in a total dividend outlay of Sh 17 billion, a 55% increase from the previous year’s Sh 10.9 billion. The dividend payout ratio stands at 86%. This is a reflection of the bank’s strong capital position and sustainable earnings, supported by a capital adequacy ratio of 19.55% and a liquidity ratio of 67.6%.
Strong Financial Performance in FY 24
Standard Chartered Kenya reported a 21% growth in operating income to Sh 50.7 billion, up from Sh 41.7 billion in FY 23. Profit before tax rose by 43% to Sh 28.2 billion, while earnings per share (EPS) rose sharply by 46% to Sh 52.6, compared to Sh 36.2 in the previous year.
Operating expenses increased moderately by 8% to Sh 20.1 billion, with the cost-to-income ratio improving to 39.6%, down from 44.8% in FY 23, driven by better cost management and digital investments. Over the past five years, the bank has invested Sh 14.1 billion in digital capabilities, with investment-to-expense ratio rising from 12% to 18%.
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Despite industry-wide credit growth challenges, local currency client assets rose by 2%. Foreign currency loans, however, declined by 28% due to reduced utilization and the appreciation of the Kenyan shilling against the U.S. dollar. The bank’s loan book quality improved significantly, with the non-performing loan (NPL) ratio dropping by 230 basis points to 7.4%. Non-performing assets declined by 29% to Sh 12 billion, and impairment losses on loans and advances fell by 30%.
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The cover ratio improved to 79.3%, well above the industry average, while the loss rate dropped to 1.0%, highlighting strong credit risk management. Customer loans now account for 46% of total earning assets, the highest in the last five years.
The Corporate and Institutional Banking (CIB) segment delivered strong results driven by transaction services, securities services, and recoveries on credit impairment. Wealth and Retail Banking (WRB) performance was buoyed by higher wealth management solutions and improved margins, with assets under management (AUM) increasing by 27% to Sh 235.3 billion.
Although total deposits declined by 14%, mainly due to foreign currency deposit contraction and a shift towards alternative investments, Standard Chartered Kenya maintained a high-quality funding base with a CASA ratio of 97%.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.