Standard Chartered Bank Kenya FY’22 earnings results were higher than our expectations. The lender posted a 33.41% y/y climb in PAT and a 33.97% growth in EPS to KES 12.06Bn and KES 31.47/share, respectively, driven by a 18.13% y/y growth in net interest income and a 13.53% y/y growth in non-interest income. Trailing ROaE & ROaA improved to 22.05% & 3.37% respectively in FY’22 as NIMs remained adequate at 6.96%. The board of directors recommended a final dividend of KES 16.00 taking the total dividend paid out in FY’22 to KES 22.00 representing a 15.79% increase from KES 19.00 paid out in FY’21.

Loan book grew 10.67% y/y to KES 139.41Bn faster than the 5.05% y/y growth in the customer deposits to KES 278.88Bn leading to a 254bps growth in the loan deposit ratio to 49.99%. We observed a notable jump in income from the Corporate, Commercial & Institutional Banking (CCIB) by 26.00% to 13.60Bn and Consumer, Private & Business Banking(CPPB) by 15.00% to KES 15.60Bn highlighting outstanding product performance and improved momentum of the wealth management business. Allocation to government securities grew 10.57% y/y to 105.70Bn in FY’22 driven by hunt for higher yields. Fair Value changes through OCI recorded a 15.07% growth y/y to 104.73Mn.