Standard Chartered Bank Kenya recorded a 5.3 percent growth in net profit during the first six months of this year to 4.7 billion shillings helped by lower total interest expense.
The lender booked a seven percent decline in interest income to 12.7 billion shillings driven by lower investment in government securities and declining yields.
StanChart’s total interest expense decreased by 26 per cent to 2.9 billion shillings.
With the interest cap still in effect for the last 3 years, banks have opted to increase their investments in government securities in efforts aimed at avoiding risk averse lenders.
However, the case is different for Standard Chartered Bank Kenya which has reduced the stock of investments in government securities to 4.56 billion shillings down from 5.77 billion shillings three months earlier.
This coupled to declining yields led to a seven percent decline in interest income to 12.7 billion shillings. Standard Chartered Bank Kenya has recommended an interim dividend payment of 5 shillings per share.
Meanwhile, TransCentury has bounced back to profitability after posting 298 million shillings in net profit during the first six months of this year compared to a loss of 685 million shillings the listed firm recorded during a similar period last year.
The profits has been attributed to completion of debt restructuring deal between the parent firm TransCentury and Kenya’s East African Cables that resulted in a 1.3 billion shillings net gain. Earnings per share stood at 32 cents per share.
Finally, Kilifi County government has launched an ambitious plan to promote value addition of coconuts to increase revenue and create job opportunities.
To increase production, Kilifi county government shall distribute 3,000 hybrid coconut seedlings that are drought and pest resistant and mature in two and a half years.