Standard Chartered Plc · LSE:STAN
Standard Chartered — Standard Chartered Bank Kenya — H1 2019 Earnings Presentation
25 slides from Standard Chartered's earnings presentation, Aug 26, 2019
Slide 1: Standard Chartered Bank Kenya Limited Half Year 2019 Results
Standard Chartered Bank Kenya Limited Half Year 2019 Results 26 August 2019
Slide 2: Kariuki Ngari, Chief Executive Officer
Kariuki Ngari Chief Executive Officer 1
Slide 3: Driving commerce and prosperity through our unique diversity
Driving commerce and prosperity through our unique diversity Who we are Strategic priorities Financial information We understand our responsibilities to our stakeholders We will invest in sustainable financing and infrastructure We will maximise return from investment in our people We support the co
Slide 4: We are one of the oldest banks in Kenya and the largest international bank
We are one of the oldest banks in Kenya and the largest international bank Who we are Strategic priorities Financial results • Presence in Kenya since 1911 • Listed on NSE since 1989 • Track record of innovation. We were the first to: o Introduce 24 hour ATMs, and integrate branches 30,000 Sharehold
Slide 5: We serve a diverse client base with differentiated products
We serve a diverse client base with differentiated products Who we are Strategic priorities Financial results Corporate & Institutional Commercial Banking Retail Banking Banking Large corporates, financial institutions, Local corporates Individuals and small businesses public sector, government and
Slide 6: Our priorities are underpinned by our Purpose and delivered by our people
Our priorities are underpinned by our Purpose and delivered by our people Who we are Strategic priorities Financial results Our Purpose Driving commerce and prosperity through our unique diversity P People Our brand Here for good A Accountability promise A Agility C Clients Our valued • Do the right
Slide 7: We are positioned to transform and disrupt with digital
We are positioned to transform and disrupt with digital … Who we are Strategic priorities Financial results Digital Digital Cost-effectiveness and time-efficiency Increasingly how Digitise client journey clients are engaging − Banking made easier • We are investing now to develop and scale new busin
Slide 8: … and are seeing encouraging early signs of progress
… and are seeing encouraging early signs of progress Who we are Strategic priorities Financial results Digital Recent progress Future initiatives • Retail digital bank launched in March 2019 • Mobile lending (including SME) • Launched ‘eXellerator’ lab • QR Pay capabilities on SC Mobile • Designed t
Slide 9: Our aspiration is to be the market leader in Kenya in wealth management
Our aspiration is to be the market leader in Kenya in wealth management Who we are Strategic priorities Financial results Wealth • We aim to be the ‘Partner of choice’ at each stage of the client’s financial lifecycle, with: • Differentiated Investment and Insurance solutions • Superior client exper
Slide 10: We are developing best-in-class capabilities
We are developing best-in-class capabilities Who we are Strategic priorities Financial results Wealth Recent progress Future initiatives • Gone live on mobile for: • Continue to up-skill wealth advisers • Motor, travel and home insurance (4x growth) • Farewell insurance plan (funeral cover) • Paperl
Slide 11: We are investing to enhance our cyber resilience and security capabilities
We are investing to enhance our cyber resilience and security capabilities Who we are Strategic priorities Financial results Identify • Information and cyber security risks; ensure governance across the Bank’s data, systems, assets and capabilities Protect Detect • All critical assets and infrastruc
Slide 12: Our global network offers unique opportunities
Our global network offers unique opportunities Who we are Strategic Strategicpriorities priorities Financial results Network Europe & Greater China & Americas North Asia • The network enables us to provide a differentiated offering to our clients In: 73% In: 9% Out: 47% Out: 3% • Africa is a key par
Slide 13: We are delivering the network
We are delivering the network Who we are Strategic priorities Financial results Network Recent progress Future initiatives • KES 2.5bn financing to MNC’s SME distributors • Tapping into investment opportunities from Middle East and South Korea into Kenya • KES 40bn transaction enabling a regional DF
Slide 14: Chemutai Murgor, Chief Financial Officer
Chemutai Murgor Chief Financial Officer 13
Slide 15: Financial performance in 1H'2019
Financial performance in 1H’2019 Strong capital and improving profitability Who we are Strategic priorities Financial results (KES bn) 1H’19 1H’18 YoY1 Operating income 14.6 14.7 (1%) • Income broadly flat due to compressed margins Operating expenses (7.3) (6.8) (7%) • Investing in technology, cyber
Slide 16: Improving credit quality
Improving credit quality …with lower impairment losses Who we are Strategic priorities Financial results Credit impairment (KES mn) 69% 43% 1,266 • Continued improvement in credit quality 664 379 • Significant reduction in impairment 1H'18 2H'18 1H'19 • 9% reduction in gross non-performing loans Gro
Slide 17: Broad-based balance sheet growth
Broad-based balance sheet growth Who we are Strategic priorities Financial results Earning assets (KES bn) vs Dec’18 237 233 223 +2% 217 126 112 119 120 +1% 111 121 99 103 +4% • Growth in customer loans across all segments 31.12.17 30.06.18 31.12.18 30.06.19 • Targeted financing to value chains in t
Slide 18: Strong capital position
Strong capital position Who we are Strategic priorities Financial results Capital (KES bn) CAR 18.52% 18.62% 19.47% 18.55% 43 41 43 41 7 6 7 6 • Well capitalised to support sustainable growth 36 35 35 36 opportunities • Prudent surplus to regulatory requirements 31.12.17 30.06.18 31.12.18 30.06.19 C
Slide 19: Kariuki Ngari, Chief Executive Officer
Kariuki Ngari Chief Executive Officer 18
Slide 20: We are Here for good
We are Here for good • We are committed to making a positive socio-economic and environmental impact: • KES 150bn+ contribution to Kenya’s GDP and supporting 330,000 jobs in Kenya1 • ~650,000 eye treatments enabled • Eliminating single-use plastics in our premises • ‘Futuremakers’ our new global ini
Slide 21: Concluding messages
Concluding messages • Good start to the year • Capital and liquidity remain strong • Improving financial performance and risk discipline • Investing to reinforce what already differentiates us • Executing on clear client led strategic priorities; significant early progress • Accelerating new capabil
Slide 22: Dividend announcement
Dividend announcement We are pleased to announce an interim dividend of KES 5.00 for every ordinary share, which will be paid on 30 October 2019 21
Slide 23: Standard Chartered
Standard Chartered & 22
Slide 24: Appendix: Glossary
Appendix: Glossary Abbreviation Description AfCFTA African Continental Free Trade Agreement ASEAN Association of South East Asian Nations ATM Automated teller machine AUM Assets under management bn Billions CAGR Compound annual growth rate CAR Capital adequacy ratio CASA Current Accounts and Savings
Slide 25: Appendix: Important notice concerning forward-looking statements
Appendix: Important notice concerning forward-looking statements Important Notice This document contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Standard Chartered Bank Kenya Limited (the “Company”), the Board of the Company (the “Dir
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