Lender Standard Chartered Bank has released its financials of the first half of 2020, ended on June 30.
According to its numbers, income dipped by 5 percent to KES 13.8 billion YoY as a result of margin compression and one-off revenue in the previous year.
The bank’s operating expenses are also 3 percent lower to KES 7.1 billion as the financial institution focuses on cost control.
Furthermore, StanChart reports that loan loss provision has gone up YoY to KES 1.6 billion partly due to the pandemic, as well as the resultant deterioration in the macroeconomic outlook.
The digital journey
According to the lender, the pandemic has reinforced the importance of its priorities in a variety of ways.
First, the bank’s investment in core digital capabilities have reportedly paid, especially during the first stage of the pandemic. For instance, up to 72 percent of the bank’s head office employees are working remotely, and additional corporate, institutional, and personal clients are reaching out to the bank via digital channels.
“With pressure being exerted on our network business from the pandemic, we are focused on supporting our clients and their ecosystems in the recovery and reconfiguration of their trade and investment flows in the trade corridors where we are present globally,” reads a statement from StanChart.
According to CEO Kariuki Ngari, up to 89 percent of the bank’s transactions are processed through digital channels.
He also reports 62 percent and 90 percent digital penetration for retail and corporate clients, respectively.
“Performance to June is muted but we are pleased with the outcome with customer deposits and assets both growing by 12% from a similar position last year. We remain watchful as we get into H2 and aim to continue supporting our clients as they get out of the moratorium period and support the ongoing recovery of the economy as the country opens up for full business,” concluded CEO Ngari.