As the Covid-19 pandemic continues to shake the performance of Kenya’s Banking Sector, Standard Chartered Bank has reported a 30.6% drop in Q3 earnings to Kshs 4.3 Billion compared to Kshs 6.2 billion in 2019.
The drop represents a Kshs 1.9 billion drop in net earnings signaling hard times for the banking sector due to increased non-payment of loans.
Loan losses rose significantly in Q3 of 2019 to Kshs 2.7 billion compared to Kshs 728.2 Million in Q3 of 2019.
The high street lender interest income from customers and investment in government paper and deposits was down to Kshs 17.9 billion compared to Kshs 19.1 billion in 2019.
However, despite the company’s income statement’s poor performance, Stanchart’s balance sheet strengthened from Kshs 290.6 billion to Kshs 314.4 billion in the same period under review.
There was also a significant growth in shareholders’ funds from Kshs 47.9 billion to Kshs 50.2 billion.
Standard Chartered Bank pre-tax profits declined from Kshs 6.6 billion from Kshs 9.1 billion in Q3 billion in 2019.
The drop in earnings leads to a decline in the company’s earnings per share from Kshs 16.15 in Q3 of 2019 to Kshs 16.15 in Q3 of 2020.
Other banks that have experienced declined net income in Q3 of 2020 include Equity Bank, KCB, Cooperative Bank, and ABSA Bank.