Standard Chartered Bank released their 3Q22 earnings results posting a 37.11% climb in EPS & PAT to KES 22.61 and KES 8.71Bn respectively driven by a 7.29% increase in net interest income and a 16.11% growth in non-interest income. Trailing ROaE & ROaA improved to 14.37% & 2.24% respectively in Q3’22.NIMs remained adequate at 6.40% while the profit margin edged up 6.94% points q/q to 35.47%. Factoring in the growth from previous quarters, we foresee the lender closing the year with a PAT of between KES 10.00 – 12.00 Bn
Customer deposits grew 10.72% y/y to KES 286.07Bn faster than the 3.28% y/y growth in the Loan book to KES 136.07Bn leading to a 671bps decline in the loan deposit ratio to 47.57%. Allocation to government securities grew 13.17% y/y to 111.99Bn surpassing the 110Bn Mark for the first time in 4 years. Fair value changes as a percentage of government securities increased to 1.05% from 0.03% in Q3’21 owing to the rising yield curve. We remain concerned with the lagging loan book growth compared to industry peers who are growing at double-digit figures.
