StanChart issues Sh17b record dividend as profit soars 45pc

Standard Chartered Bank Kenya (StanChart), a subsidiary of the UK-based banking multinational Standard Chartered, has announced a record dividend payout of Sh17 billion, driven by earnings growth for the year ending December 2024.  

The total dividend of Sh45 per share exceeds half of the Sh29 per share, or an aggregate of Sh10.96 billion, distributed in the previous year.  

The increase reflects the Nairobi Securities Exchange-listed bank’s commitment to rewarding shareholders, who will smile all the way to the bank amid a positive financial performance. 

StanChart Kenya announced the higher cash distribution after its net earnings in the year to December grew by nearly half (45 per cent) to Sh20 billion, riding on higher interest and non-funded income.

UK banking multinational Standard Chartered Plc, which owns 75 per cent of the Kenyan unit, according to information on its website, will take home Sh12.75 billion in dividends. 

The lender’s operating expenses grew marginally by 1.85 per cent recording a jump of Sh408 million to Sh22.4 billion, sparing the bottom line. 

“We delivered a record performance in 2024 with profit before tax up 43 per cent driven by strong topline growth, good business momentum, and excellent execution of our strategy of combining differentiated cross-border capabilities for corporate and institutional clients with leading wealth management solutions for affluent clients,” said Standard Chartered Bank Kenya Chief Executive Kariuki Ngari.

The lender’s net loans and advances to customers declined seven per cent from December 31, 2023 on account of what Mr Ngari said was foreign currency revaluation on the back of a strengthening Kenya shilling and reduced client utilisation.

StanChart is the third tier-one lender to announce its full-year results after KCB Group and Stanbic Holdings. 

KCB Group shareholders earlier reaped a Sh9.6 billion windfall after Kenya’s largest bank by assets reported a 64.9 per cent surge in net profit in 2024. 

This was fuelled by robust growth across its diversified business segments. 

KCB’s dividend boom also follows Stanbic Holdings’ recent announcement of a record Sh8.19 billion dividend payout, reflecting a broader trend of strong earnings and shareholder returns among major lenders. 

Stanbic’s total payout of Sh20.74 per share, a more than 30 per cent increase from the previous year, highlighted the sector’s resilience.