Annual Report 2022
The[[ bank for the new economy]]
Here for good
Strategic report
We are the bank for the new economy - of people and ideas, of technology and trade
We have built a strong foundation in the world's most dynamic markets, serving the people and businesses that drive growth. We are at the frontline of today's biggest challenges and are taking a stand on key issues such as climate change, economic participation and globalisation. Our collaborative approach to innovation and drive to be diverse and inclusive means we can do more, better and faster.
Our Purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, Here for good.
Stakeholders
Throughout this report, we use these icons to represent the different stakeholder groups for whom we create value.
Clients | Regulators and | Investors | Suppliers | Society | Employees | Read more on pages 26 to 38 |
governments |
About this report
Our Annual Report and Financial Statements for the year ended 31 December 2022 provides insights into our progress in realising our purpose; to drive commerce and prosperity through our unique diversity. It provides details on our business, our strategy, our risk management, our governance and our financial performance.
Sustainability reporting
We adopt an integrated approach to corporate reporting, embedding non-financial information throughout our Annual Report.
This report is prepared in accordance with the requirements of the Kenyan Companies Act 2015, guidelines issued by the Capital Markets Authority and the Central Bank of Kenya's Prudential Guidelines.
For more information please visit sc.com/ke
Contents
Strategic report
- Who we are
- Delivering our strategy
- Five year summary of financial performance
- Our business
- Business model
- Our strategy
- Our stands
- Client segments reviews
- Product groups
- Risk management
- Stakeholders and responsibilities
- Chairperson's statement
- Chief Executive Officer's statement
- Corporate Governance
- Financial statements
@StanChart
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4 | Standard Chartered Bank Kenya Limited - Annual Report 2022 |
Who we are
Our Valued behaviours
Never settle
Better together
Do the right thing
Standard Chartered Bank Kenya Limited ('the Company', 'the Bank' or 'Standard Chartered') is a leading international banking group and the largest international bank in Kenya. Established in 1911, Standard Chartered Bank Kenya Limited is one of the oldest banks servicing this market.
We are a bank like no other. Our unique footprint, diverse experience, capabilities and culture set us apart. They enable us to capitalise on opportunities for our business, our customers, and the communities we serve.
Guided by our Purpose - to drive commerce and prosperity through our unique diversity - we connect companies, institutions, and individuals, who are the engines of global growth to the world's fastest growing and most dynamic regions.
Together, we are developing new economies that can deliver sustained prosperity in the decades ahead. As our brand promise makes clear, we are here for good.
We're developing a future-ready workforce built on good conduct and our valued behaviours.
- Continuously improve and innovate
- Simplify
- Learn from your successes and failures
• See more in others
• "How can I help?"
- Build for the long term
• Live with integrity
• Think client
- Be brave, be the change
Strategic report
Cutting tape during the launch of the Village market sales and service centre.
Standard Chartered Bank Kenya Limited - Annual Report 2022 | 1 |
Strategic report
Delivering our strategy
Our purpose and progress
Our Purpose is to drive commerce and prosperity through our unique diversity, and this guides our strategy and everything we do. The businesses we serve, and with which we connect and partner, are the engines of trade and innovation, and central to the transition to a fair, sustainable future.
In support of our Purpose, we continue to focus on three 'Stands', areas where we have long-term ambitions for positive business and societal impact - Accelerating Zero, Lifting Participation and Resetting Globalisation. These stands are fully consistent with our strategy, stretching our thinking, our action and our leadership to accelerate our growth.
We set out our strategy in early 2021, built on the four pillars of Network, Affluent, Mass Retail and Sustainability. Two years on, these themes and areas of focus are even more relevant; our strategy is working and will continue to drive future growth.
Financial KPIs
We measure our progress against Group key performance indicators (KPIs), a selection of which are below. Our Group KPIs include non-financial measures reflecting our commitment
to sustainable social and economic development across our business, operations and communities.
Operating income | Return on capital employed |
KShs 33,093m | 21.47% |
17% | 263bps |
(2021: KShs 28,303m) | (2021: 18.84%) |
Profit before tax | Total capital |
KShs 17,103m | 17.28% |
36% | (48)bps |
(2021: 17.76%) | |
(2021: KShs 12,598m) | |
Basic earnings per share | Tier 1 capital* |
KShs 31.47 | 15.36% |
798bps | (18)bps |
(2021: KShs 23.49) | (2021: 15.54%) |
- Tier 1 capital and total capital are computed as a percentage of the Company's risk weighted assets.
Non-financial measures
Diversity and inclusion: women in senior roles | Non branch transactions |
47% | 97% |
(2021: 46%) | (2021: 96%) |
2 | Standard Chartered Bank Kenya Limited - Annual Report 2022 |
Five year summary of financial performance
2022 | 2021 | 2020 | 2019 | 2018 | |
Consolidated income statement | KShs '000 | KShs '000 | KShs '000 | KShs '000 | KShs '000 |
Operating income | 33,092,934 | 28,302,502 | 26,688,964 | 27,949,636 | 27,776,028 |
Operating expenses | (15,074,919) | (14,192,783) | (15,686,497) | (15,542,350) | (14,580,278) |
Impairment losses on financial instruments | (784,623) | (1,492,838) | (3,586,052) | (233,429) | (1,349,134) |
Impairment losses on intangible assets | (130,193) | (18,828) | (20,357) | - | - |
Profit before tax | 17,103,199 | 12,598,053 | 7,396,058 | 12,173,857 | 11,846,616 |
Income tax expense | (5,045,264) | (3,554,214) | (1,955,641) | (3,937,084) | (3,747,423) |
Profit after tax | 12,057,935 | 9,043,839 | 5,440,417 | 8,236,773 | 8,099,193 |
Information per ordinary share | |||||
Basic earnings per share (KShs) (2019-2018 | 31.47 | ||||
restated) | 23.49 | 13.95 | 21.36 | 20.99 | |
Dividend per share on each ordinary share | 22.00 | ||||
(KShs) | 19.00 | 10.50 | 12.50 | 19.00 | |
Consolidated statement of financial position | |||||
Loans and advances to customers (gross) | 148,690,254 | 136,181,940 | 130,719,448 | 136,534,569 | 127,860,005 |
Impairment losses on loans and advances to | (9,277,694) | ||||
customers | (10,207,350) | (9,195,221) | (7,844,228) | (9,208,455) | |
Government securities | 105,696,882 | 95,596,185 | 99,779,222 | 99,610,577 | 98,685,925 |
Other assets | 136,150,573 | 113,301,163 | 104,301,621 | 73,838,138 | 68,066,548 |
Total assets | 381,260,015 | 334,871,938 | 325,605,070 | 302,139,056 | 285,404,023 |
Deposits from customers | 278,879,309 | 265,469,114 | 256,497,530 | 228,433,515 | 224,284,420 |
Other liabilities | 46,243,976 | 16,188,718 | 18,217,502 | 25,945,014 | 14,480,215 |
Total liabilities | 325,123,285 | 281,657,832 | 274,715,032 | 254,378,529 | 238,764,635 |
Net assets | 56,136,730 | 53,214,106 | 50,890,038 | 47,760,527 | 46,639,388 |
Shareholders' funds | 56,136,730 | 53,214,106 | 50,890,038 | 47,760,527 | 46,639,388 |
Ratios | |||||
Cost income ratio | 46% | 50% | 59% | 56% | 52% |
Return on capital employed | 21% | 19% | 11% | 19% | 19% |
Impairment charge/gross loans and advances | 1% | 1% | 3% | 0% | 1% |
Gross loans and advances to deposits ratio | 53% | 51% | 51% | 60% | 57% |
Gross non-performing loans and advances/total | 9% | ||||
gross loans and advances | 10% | 15% | 9% | 11% | |
Core capital/total deposit liabilities | 15% | 15% | 15% | 16% | 16% |
Core capital/ total risk weighted assets | 15% | 16% | 16% | 15% | 17% |
Total capital/total risk weighted assets | 17% | 18% | 18% | 18% | 20% |
Strategic report
Standard Chartered Bank Kenya Limited - Annual Report 2022 | 3 |
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Standard Chartered Bank Kenya Ltd. published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 11:20:14 UTC.