Extract...
"MUSCULAR RESULTS"
StanChart raised its earnings per share for the period by 6 percent to 19.75 shillings, but cut its dividend per share to 11.00 shillings from 13.50 shillings the previous year.
"These are in fact muscular results. StanChart was quite macho about its accounting treatment around its bond portfolio and took a material hit 'on the chin' at the first-half stage," said Aly Khan Satchu, an independent trader and analyst.
"These results were a great deal better than consensus estimates."
Net interest income rose 21 percent to 10.1 billion shillings, lifting total income to 16.2 billion shillings, StanChart said.
It attributed the growth in interest income to a focus on consumer banking, as it seeks to balance the business and shift away from its traditional over-reliance on corporate customers.
The cost to income ratio rose to 45.6 percent from 42.6 percent in the previous year, reflecting a 23 percent jump in costs, while provision for bad debts increased to 561 million shillings from 447 million shillings.
"Total non performing loans as a proportion of total gross loans, stood at 1.1 percent from 2.0 percent and remains one of the lowest in the banking sector in Kenya," StanChart said.