Standard Chartered Bank Kenya : – Full Year 2022 Results

Standard Chartered Bank Kenya Limited

The Board of Directors of Standard Chartered Bank Kenya Limited is pleased to announce the audited results of the Bank and the Group for the year ended 31 December 2022

STATEMENT OF FINANCIAL POSITION

ASSETS

Cash (both local and foreign)

Balances due from Central Bank of Kenya

Kenya Government and other securities held for dealing purposes Financial assets at fair value through profit and loss Investment Securities:

1. Amortised cost:
2. 1. Kenya Government securities
   2. Other securities
3. Fair value through other comprehensive income (FVOCI)
4. 1. Kenya Government securities
   2. Other securities

Deposits and balances due from local banking institutions Deposits and balances due from banking institutions abroad Tax recoverable

Loans and advances to customers (net)

Balances due from banking institutions in the group Investments in associates

Investments in subsidiary companies Investments in joint ventures Investment properties

Property and equipment Prepaid lease rentals Intangible assets Deferred tax asset Retirement benefit asset Other assets

TOTAL ASSETS

LIABILITIES

Balances due to Central Bank of Kenya

Customer deposits

Deposits and balances due to local banking institutions

Deposits and balances due to foreign banking institutions

Other money market deposits

Borrowed funds

Balances due to banking institutions in the group

Tax payable

Dividends payable

Deferred tax liability

Retirement benefit liability

Other liabilities

TOTAL LIABILITIES

SHAREHOLDERS' FUNDS

Paid up/assigned capital

Share premium/ (discount)

Revaluation reserves

Retained earnings/ (accumulated losses)

Statutory loan loss reserves

Other reserves (fair value)

Proposed dividends

Capital grants

TOTAL SHAREHOLDERS' EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

STATEMENT OF COMPREHENSIVE INCOME

INTEREST INCOME

Loans and advances

Government securities

Deposits and placements with banking institutions

Other interest income

Total interest income

INTEREST EXPENSES

Customer deposits

Deposits and placements from banking institutions

Other interest expenses

Total interest expenses

NET INTEREST INCOME/(LOSS)

NON-INTEREST INCOME

Fees and commissions on loans and advances

Other fees and commissions

Foreign exchange trading income/(loss)

Dividend income

Other income

Total non-interest income

TOTAL OPERATING INCOME

OTHER OPERATING EXPENSES

Loan loss provision

Staff costs

Directors' emoluments

Rental charges

Depreciation charge on property and equipment

Amortisation charges

Other operating expenses

Total other operating expenses

Profit/ (loss) before tax and exceptional items

Exceptional items

Profit/ (loss) after exceptional items

Current tax

Deferred tax

Profit/ (loss) after tax and exceptional items

Other comprehensive income

Gains/(losses) from translating the financial statements of foreign operations Fair value changes in financial assets at FVOCI

Revaluation surplus on property, plant and equipment Share of other comprehensive income of associates

Income tax relating to components of other comprehensive income

Other comprehensive income for the year net of tax

Total comprehensive income for the year

EARNINGS PER SHARE - BASIC & DILUTED (KShs)

BANK		GROUP
31.12.2022	31.12.2021	31.12.2022	31.12.2021
KShs. 000	KShs. 000	KShs. 000	KShs. 000
Audited	Audited	Audited	Audited
3,457,845	3,623,968	3,457,845	3,623,968
19,799,461	20,076,483	19,799,461	20,076,483
965,720	4,580,708	965,720	4,580,708
421,705	486,538	421,705	486,538
-	-	-	-
-	-	-	-
104,731,162	91,014,905	104,731,162	91,014,905
-	-	-	-
-	2,195,493	-	2,195,493
428,089	233,558	428,089	233,558
913,568	913,568	1,022,677	1,007,877
139,412,560	125,974,590	139,412,560	125,974,590
96,602,123	72,303,668	96,121,186	71,991,928
-	-	-	-
145,243	145,243	-	-
-	-	-	-
-	-	-	-
3,182,732	3,418,034	3,182,732	3,418,034
-	-	-	-
4,103,224	3,898,841	4,103,224	3,898,841
4,027,556	2,417,167	4,117,708	2,479,484
-	-	-	-
3,439,658	3,828,722	3,495,946	3,889,531
381,630,646	335,111,486	381,260,015	334,871,938
6,992,340	-	6,992,340	-
278,879,309	265,469,114	278,879,309	265,469,114
6,286,259	109,570	6,286,259	109,570
201,865	273,644	201,865	273,644
-	-	-	-
-	-	-	-
13,459,665	10,714,736	12,717,385	9,631,154
2,654,111	274,868	2,655,065	361,913
211,412	239,936	211,412	239,936
-	-	-	-
96,428	32,277	96,428	32,277
17,068,249	5,517,946	17,083,222	5,540,224
325,849,638	282,632,091	325,123,285	281,657,832
2,169,253	2,169,253	2,169,253	2,169,253
7,792,427	7,792,427	7,792,427	7,792,427
878,959	889,290	878,959	889,290
35,487,033	32,566,322	35,842,755	33,301,033
2,255,690	1,249,844	2,255,690	1,249,844
(871,188)	526,664	(871,188)	526,664
6,130,300	5,374,599	6,130,300	5,374,599
1,938,534	1,910,996	1,938,534	1,910,996
55,781,008	52,479,395	56,136,730	53,214,106
381,630,646	335,111,486	381,260,015	334,871,938
12,731,113	11,795,572	12,731,113	11,795,572
10,298,361	9,153,619	10,298,361	9,153,619
2,422,813	1,309,460	2,422,813	1,309,460
20,757	25,900	20,757	25,900
25,473,044	22,284,551	25,473,044	22,284,551
2,611,514	3,148,625	2,594,501	3,121,588
279,267	80,299	279,267	80,299
376,211	273,240	376,211	273,240
3,266,992	3,502,164	3,249,979	3,475,127
22,206,052	18,782,387	22,223,065	18,809,424
221,886	361,771	221,886	361,771
2,641,955	3,418,457	4,251,977	5,074,450
5,973,243	3,770,583	5,973,243	3,770,583
1,160,323	747,137	-	-
1,306,877	1,148,193	1,306,877	1,148,191
11,304,284	9,446,141	11,753,983	10,354,995
33,510,336	28,228,528	33,977,048	29,164,419
1,328,458	2,081,628	1,328,458	2,081,628
6,689,167	6,169,873	6,788,892	6,272,205
251,595	264,584	252,155	264,864
257,877	259,841	257,877	259,841
435,961	553,946	435,961	553,946
820,529	936,026	820,529	936,026
6,588,335	5,821,126	6,989,977	6,197,856
16,371,922	16,087,024	16,873,849	16,566,366
17,138,414	12,141,504	17,103,199	12,598,053
-	-	-	-
17,138,414	12,141,504	17,103,199	12,598,053
(5,695,664)	(2,847,546)	(6,067,273)	(3,224,275)
994,174	(313,422)	1,022,009	(329,939)
12,436,924	8,980,536	12,057,935	9,043,839
-	-	-	-
(2,054,052)	(910,725)	(2,054,052)	(910,725)
			-
-	-	-	-
616,215	273,217	616,215	273,217
(1,437,837)	(637,508)	(1,437,837)	(637,508)
10,999,087	8,343,028	10,620,098	8,406,331
32.47	23.32	31.47	23.49

OTHER DISCLOSURES	BANK
		31.12.2022	31.12.2021
		KShs. 000	KShs. 000
		Audited	Audited
1) NON-PERFORMING LOANS AND ADVANCES
a)	Gross non-performing loans and advances	22,577,388	23,283,164
b)	Less: Interest in suspense	9,539,146	9,536,615
c)	Net non-performing loans and advances (a-b)	13,038,242	13,746,549
d)	Less: loan loss Provisions	10,131,278	10,116,212
e)	Net non-performing loans (c-d)	2,906,964	3,630,337
f)	Realizable value of securities	2,268,159	3,207,852
g)	Net NPLs exposure (e-f)	638,805	422,485
2) INSIDER LOANS AND ADVANCES
a)	Directors, shareholders and associates	55,704	76,112
b)	Employees	6,398,783	6,506,261
c)	Total insider loans, advances and other facilities	6,454,487	6,582,373
3) OFF-BALANCE SHEET ITEMS
a)	Letters of credit, guarantees, acceptances	71,140,599	67,705,074
b)	Forwards, swaps, and options	25,759,087	48,525,676
c)	Other contingent liabilities	-	-
d)	Total contingent liabilities	96,899,686	116,230,750
4) CAPITAL STRENGTH
a)	Core capital	42,132,719	40,822,397
b)	Minimum statutory capital	1,000,000	1,000,000
c)	Excess/(deficiency)	41,132,719	39,822,397
d)	Supplementary capital	5,271,363	5,847,299
e)	Total capital (a+d)	47,404,082	46,669,696
f)	Total risk weighted assets	274,257,322	262,840,012
g)	Core capital/total deposit liabilities	15.11%	15.37%
h)	Minimum statutory ratio	8.00%	8.00%
i)	Excess/ (deficiency) (g-h)	7.11%	7.37%
j)	Core capital/total risk weighted assets	15.36%	15.53%
k)	Minimum statutory ratio	10.50%	10.50%
l)	Excess/(deficiency) (j-k)	4.86%	5.03%
m) Total capital/total risk weighted assets	17.28%	17.76%
n)	Minimum statutory ratio	14.50%	14.50%
o)	Excess/(deficiency) (m-n)	2.78%	3.26%
p)	Adjusted core capital/total deposit liabilities*	15.14%	15.42%
q)	Adjusted core capital/total risk weighted assets*	15.40%	15.57%
r)	Adjusted total capital/total risk weighted assets*	17.32%	17.80%
5) LIQUIDITY
a)	Liquidity ratio	73.03%	70.73%
b)	Minimum statutory ratio	20.00%	20.00%
c)	Excess/(deficiency) (a-b)	53.03%	50.73%

*The adjusted capital ratios include the expected credit loss provisions added back to capital in line with the Central Bank of Kenya guidance note issued in April 2018 on implementation of IFRS 9.

Dividends

The Board has resolved to recommend to the shareholders at the forthcoming Annual General Meeting, the payment of a final dividend of KShs 16.00 for every ordinary share of KShs 5.00. One interim dividend of KShs 6.00 for every ordinary share of KShs 5.00 was paid in December 2022. The total dividends, therefore, is KShs 22.00 (2021: KShs 19.00). The dividend will be payable to shareholders registered on the Company's Register at the close of business on 21 April 2023 and will be paid on or after 25 May 2023.

The directors are also pleased to announce the payment of the final dividend on the non-redeemable,non-cumulative, non- voting, non-participating and non-convertible preference shares for the period 30 June 2022 to 30 December 2022 at the rate of 6% per annum on the issue price of each share.

Notice of the Annual General Meeting

Notice is hereby given that the thirty seventh Annual General Meeting of the shareholders of the Company will be held virtually on 25 May 2023. Further details of the virtual meeting will be published in due course.

Message from the Directors

The above Statements of Comprehensive Income and Statements of Financial Position are extracts of financial statements audited by Ernst & Young LLP. They can be accessed on the Company's website www.sc.com/ke/investor-relations. To get a full picture of the Group's performance, the complete set of audited financial statements will be available on www.sc.com/ ke/investor-relations after 30 April 2023 or from the Company Secretary at our offices at Standard Chartered @Chiromo, 48 Westlands Road.

The financial statements were approved by the Board of Directors on 14 March 2023 and signed on its behalf by:

Kellen Kariuki	Kariuki Ngari
Chairperson	Managing Director & Chief Executive Officer
14 March 2023

Standard Chartered Bank Kenya Limited is regulated by Central Bank of Kenya.

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Standard Chartered Bank Kenya ltd is regulated by Central Bank of Kenya. Investment return is based on individual client's risk appetite. Past performance is not an indicator of future performance. Terms and Conditions apply. Insurance solutions are underwritten by Sanlam Life Insurance Kenya Ltd and is responsible for the settlement of all claims relating to the solutions. Insurance products are distributed through Standard Chartered Bancassurance Intermediary Limited a wholly owned subsidiary of the Bank that is regulated by the Insurance Regulatory Authority. Investment products are distributed by Standard Chartered Investment Services Ltd a wholly owned subsidiary of the Bank that is licensed by the Capital Markets Authority as a Fund Manager.

DIVIDEND PER SHARE - DECLARED (KShs)

22.00

19.00

22.00

19.00