StanChart Kenya reports strong H1 results

Standard Chartered Kenya has reported robust financial performance for the first half of the year, showcasing a strong balance sheet momentum and healthy revenue growth. CNBC Africa's Murungi Sarah engaged in an exclusive interview with Kariuki Ngari, the CEO of Standard Chartered Kenya, to delve into the key drivers behind the bank's success and its strategic initiatives for sustainable growth. The conversation highlighted the bank's focus on alternative investment products, digital initiatives, and ESG investments as key pillars for driving profitability and client engagement. With inflation rates showing signs of stabilisation, there is a growing sense of optimism among financial market experts in the region regarding the bank's prospects for the second half. Standard Chartered Kenya's commitment to sustainability and innovative financial solutions positions it as a leader in driving the transition towards a more sustainable and responsible banking sector. One of the key highlights of Standard Chartered Kenya's financial performance in the first half of the year was the strong performance of its alternative investment products. The bank's investment fund, Eshi Shilingi, has garnered significant popularity, surpassing the $10 million mark and enabling retail clients to access investment opportunities. The CEO, Kariuki Ngari, emphasized the broad-based business performance, with revenue growth coming from both the corporate and retail segments. The bank's operating profit saw an impressive 27% year-on-year increase, underscoring its resilience and prudent risk management in a challenging operating environment. Furthermore, Standard Chartered Kenya showcased a solid balance sheet momentum, with assets and deposits continuing to grow steadily. The bank's focus on wealth management has borne fruit, with Assets Under Management (AUMs) witnessing a remarkable 19% year-on-year growth. By encouraging clients to explore wealth products like fixed income or mutual funds, the bank has achieved a 2% year-on-year growth in deposits. The strategic shift towards wealth management has proven to be popular among clients, reflecting a shift away from traditional fixed deposit products. Looking ahead to the next six months, Kariuki Ngari expressed optimism about the external environment, noting signs of improvement such as easing inflation rates. While challenges persist, the bank's resilient business model and commitment to strategy execution position it well for a successful second half of the year. The CEO highlighted the strong revenue growth of 34% year-on-year as a key driver of the bank's impressive performance in the first half. Additionally, stringent cost control measures and strategic investments in digital initiatives have contributed to the bank's profitability. In line with its commitment to digital innovation, Standard Chartered Kenya has prioritized investments in digital platforms such as SC Shilingi and SC Mobile. These initiatives have enhanced client accessibility and convenience, with over 87 services now available on the mobile banking platform. The bank's investment in enhancing digital capabilities for both retail and corporate clients underscores its dedication to providing a seamless banking experience. Moreover, through initiatives like the CSD DAO, which links commercial banks for online treasury bill investments, the bank is driving digital transformation in the financial sector. Standard Chartered Kenya's efforts to broaden its ESG initiatives and sustainability investments have garnered attention, particularly with the recent sustainability linked loan agreement with Safaricom. The bank's focus on sustainability as a strategic pillar aligns with the growing global trend towards responsible investing. By offering innovative financial solutions like sustainability linked loans and green bonds, the bank is actively contributing to the transition towards a more sustainable economy. Kariuki Ngari emphasized that Standard Chartered Kenya's role in leading conversations and providing expertise in sustainable finance is crucial for supporting clients' climate change initiatives and achieving net zero commitments. In conclusion, Standard Chartered Kenya's impressive financial results in the first half of the year reflect its steadfast commitment to strategic growth, digital innovation, and sustainability. With a positive outlook for the second half and a focus on driving sustainable finance initiatives, the bank is poised to continue its success trajectory in the dynamic Kenyan financial market.