Standard Chartered : H1 2016 results

Standard Chartered Bank Kenya Limited MESSAGE FROM THE DIRECTORS

The Directors are pleased to announce the payment of an interim dividend of KShs 6.00 per ordinary share of KShs 5.00. The Directors are also pleased to announce the payment of an interim dividend on the non-redeemable, non-cumulative, non-voting, non-participating and non-convertible preference shares for the period 31 December 2015 to 29 June 2016 at the rate of 6% per annum on the issue price of each share. Both dividends will be paid on or after 26 September 2016 to the shareholders on the share register at the close of business on 31 August 2016.

These financial statements are extracts from the books of the institution and can be accessed on the institution's websitewww.sc.com/ke/investor-relations. They may also be accessed at the institution's head office located at StandardChartered@Chiromo, 48 Westlands Road.

Mr. Lamin Manjang

Managing Director & Chief Executive Officer 17 August 2016

Mrs. Anne Mutahi

Chair to the Board

Standard Chartered Bank Kenya Limited is regulated by the Central Bank of Kenya.

OTHER DISCLOSURES	BANK
1) NON-PERFORMING LOANS AND ADVANCES	30.06.2016	31.03.2016	31.12.2015	30.06.2015
	KShs. 000	KShs. 000	KShs. 000	KShs. 000
	Un-audited	Un-audited	Audited	Un-audited
(a) Gross non-performing loans and advances	15,360,300	15,409,376	14,697,920	8,347,026
(b) Less: Interest in suspense	4,025,674	3,516,438	3,016,256	2,309,337
(c) Total non-performing loans and advances (a-b)	11,334,626	11,892,938	11,681,664	6,037,689
(d) Less: Loan loss provisions	5,510,145	5,417,586	4,763,351	3,196,008
(e) Net non-performing loans and advances (c-d)	5,824,481	6,475,352	6,918,313	2,841,681
(f) Realizable value of securities	4,955,321	5,645,197	6,129,712	2,538,269
(g) Net NPLs Exposure (e-f)	869,160	830,155	788,601	303,412
2) INSIDER LOANS AND ADVANCES	19,660	31,128	28,252	32,080
(a) Directors, shareholders and associates
(b) Employees	5,867,918	5,793,925	5,918,281	5,444,426
(c) Total insider loans and advances	5,887,578	5,825,053	5,946,533	5,476,506
3) OFF-BALANCE SHEET ITEMS	36,744,694	37,646,975	34,386,994	41,803,102
(a) Letters of credit, guarantees and acceptances
(b) Forwards, swaps and options	72,714,823	71,189,769	47,792,560	59,226,944
(c) Other contingent liabilities	-	-	-	-
(d) Total contingent liabilities	109,459,517	108,836,744	82,179,554	101,030,046
4) CAPITAL STRENGTH	34,645,917	34,290,023	33,258,825	32,627,308
(a) Core capital
(b) Minimum statutory capital	1,000,000	1,000,000	1,000,000	1,000,000
(c) Excess / (deficiency) (a-b)	33,645,917	33,290,023	32,258,825	31,627,308
(d) Supplementary capital	7,117,927	7,188,941	6,888,466	7,837,268
(e) Total capital (a+d)	41,763,844	41,478,964	40,147,291	40,464,576
(f) Total risk weighted assets	193,809,794	194,703,736	189,747,429	188,569,669
(g) Core capital / total deposit liabilities	18.15%	18.58%	19.33%	19.99%
(h) Minimum statutory ratio	8.00%	8.00%	8.00%	8.00%
(i) Excess / (deficiency) (g-h)	10.15%	10.58%	11.33%	11.99%
(j) Core capital / total risk weighted assets	17.88%	17.61%	17.53%	17.30%
(k) Minimum statutory ratio	10.50%	10.50%	10.50%	10.50%
(l) Excess / (deficiency) (j-k)	7.38%	7.11%	7.03%	6.80%
(m) Total capital / total risk weighted assets	21.55%	21.30%	21.16%	21.46%
(n) Minimum statutory ratio	14.50%	14.50%	14.50%	14.50%
(o) Excess / (deficiency) (m-n)	7.05%	6.80%	6.66%	6.96%
5) LIQUIDITY
(a) Liquidity ratio	61.93%	60.67%	53.74%	47.98%
(b) Minimum statutory ratio	20.00%	20.00%	20.00%	20.00%
(c) Excess / (deficiency) (a-b)	41.93%	40.67%	33.74%	27.98%

The Board of Directors of Standard Chartered Bank Kenya Limited is pleased to announce the un-audited results of the Bank and the Group for the six month period ended 30 June 2016

STATEMENT OF FINANCIAL POSITION	BANK			GROUP
ASSETS Cash (both local and foreign) Balances due from Central Bank of Kenya Kenya Government securities and other securities held for dealing purposes Financial assets at fair value through profit and loss Investment securities: Held to Maturity: Kenya Government securities Other securities Available for sale: Kenya Government securities Other securities Deposits and balances due from local banking institutions Deposits and balances due from banking institutions abroad Tax recoverable Loans and advances to customers (net) Balances due from banking institutions in the group Investments in associates Investments in subsidiary companies Investments in joint ventures Investment properties Property and equipment Prepaid lease rentals Intangible assets Deferred tax asset Retirement benefit asset Other assets TOTAL ASSETS LIABILITIES Balances due to Central Bank of Kenya Customer deposits Deposits and balances due to local banking institutions Deposits and balances due to foreign banking institutions Other money market deposits Borrowed funds Balances due to banking institutions in the group Tax payable Dividends payable Deferred tax liability Retirement benefit liability Other liabilities TOTAL LIABILITIES SHAREHOLDERS' FUNDS Paid up / Assigned capital Share premium / (discount) Revaluation reserves Retained earnings / (Accumulated losses) Statutory loan loss reserve Other reserves (Available for Sale) Proposed dividends Capital grants TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	30.06.2016 KShs. 000 Un-audited 2,483,970 11,260,716 6,892,276 1,014,144 - - 85,253,589 516,350 4,323,521 240,011 - 114,265,013 20,733,712 - 141,243 - - 3,085,002 245,445 2,675,942 - - 2,772,793	31.03.2016 KShs. 000 Un-audited 3,005,837 15,067,123 4,804,038 934,894 - - 68,547,131 521,848 11,139,270 321,995 - 109,787,058 24,631,599 - 141,243 - - 3,176,233 246,177 2,791,300 - - 4,594,905	31.12.2015 KShs. 000 Audited 3,791,248 10,449,333 5,709,525 688,538 - - 67,416,543 494,879 2,979,530 211,385 173,246 115,125,427 17,890,777 - 141,243 - - 3,265,044 246,908 2,905,991 - - 2,640,939	30.06.2015 KShs. 000 Un-audited 3,289,589 9,926,817 1,296,155 1,282,672 - - 62,688,909 514,119 3,915,213 255,094 461,423 123,256,075 11,461,288 - 140,243 - - 3,440,232 248,368 2,975,432 - - 3,186,465	30.06.2016 KShs. 000 Un-audited 2,483,970 11,260,716 6,892,276 1,014,144 - - 85,402,418 516,350 4,323,521 240,011 - 114,265,013 20,733,781 - - - - 3,085,002 245,445 2,675,942 - - 2,809,631	31.03.2016 KShs. 000 Un-audited 3,005,837 15,067,123 4,804,038 934,894 - - 68,688,685 521,848 11,139,270 321,995 - 109,787,058 24,631,669 - - - - 3,176,233 246,177 2,791,300 - - 4,640,945	31.12.2015 KShs. 000 Audited 3,791,248 10,449,333 5,709,525 688,538 - - 67,416,543 494,879 2,979,530 211,385 178,494 115,125,427 17,857,239 - - - - 3,265,044 246,908 2,905,991 - - 2,645,363	30.06.2015 KShs. 000 Un-audited 3,289,589 9,926,817 1,296,155 1,282,672 - - 62,688,909 514,119 3,915,213 255,094 440,845 123,256,075 11,461,288 - - - - 3,440,232 248,368 2,975,432 - - 3,202,700
	255,903,727	249,710,651	234,130,556	228,338,094	255,948,220	249,757,072	233,965,447	228,193,508
	- 190,872,512 2,039,842 3,803,667 - - 10,354,428 73,747 - 961,632 16,354 4,698,447	- 184,533,840 152,559 3,828,152 - - 11,226,840 911,868 - 195,815 14,279 4,996,344	- 172,036,056 2,885,506 1,407,907 - - 10,898,963 - 1,474,527 37,323 12,204 4,463,587	5,959,963 163,211,762 55,426 1,259,127 - - 12,877,044 - - 290,201 7,709 4,828,084	- 190,872,512 2,039,842 3,803,667 - - 9,865,351 97,152 - 961,981 16,354 4,709,732	- 184,533,840 152,559 3,828,152 - - 10,761,466 980,643 - 194,770 14,279 5,012,290	- 172,036,056 2,885,506 1,407,907 - - 10,355,723 37,049 1,474,527 29,036 12,204 4,475,654	5,959,963 163,211,762 55,426 1,259,127 - - 12,418,368 - - 283,572 7,709 4,855,459
	212,820,629	205,859,697	193,216,073	188,489,316	212,366,591	205,477,999	192,713,662	188,051,386
	1,825,798 7,792,427 459,490 27,186,888 928,112 902,947 2,144,833 1,842,603	1,825,798 7,792,427 461,938 26,706,311 977,303 264,103 3,949,184 1,873,890	1,825,798 7,792,427 515,790 24,518,834 618,797 (172,831) 3,949,184 1,866,484	1,825,798 7,792,427 549,658 25,984,477 2,127,366 (287,411) - 1,856,463	1,825,798 7,792,427 459,490 27,684,602 928,112 903,764 2,144,833 1,842,603	1,825,798 7,792,427 461,938 27,134,430 977,303 264,103 3,949,184 1,873,890	1,825,798 7,792,427 515,790 24,856,136 618,797 (172,831) 3,949,184 1,866,484	1,825,798 7,792,427 549,658 26,277,821 2,127,366 (287,411) - 1,856,463
	43,083,098	43,850,954	40,914,483	39,848,778	43,581,629	44,279,073	41,251,785	40,142,122
	255,903,727	249,710,651	234,130,556	228,338,094	255,948,220	249,757,072	233,965,447	228,193,508
STATEMENT OF COMPREHENSIVE INCOME
INTEREST INCOME	7,778,323	3,904,096	14,914,705	7,176,185	7,778,323	3,904,096	14,914,705	7,176,185
Loans and advances
Government securities	4,765,641	2,272,039	6,973,609	3,197,925	4,773,341	2,273,632	6,973,609	3,197,925
Deposits and placements with banking institutions	298,270	141,544	754,560	336,806	298,270	141,544	754,560	336,806
Other interest income	193,969	84,829	234,211	80,961	193,969	84,829	234,211	80,961
Total interest income	13,036,203	6,402,508	22,877,085	10,791,877	13,043,903	6,404,101	22,877,085	10,791,877
INTEREST EXPENSES	2,754,187	1,362,394	4,014,212	1,674,448	2,740,122	1,353,854	3,982,472	1,659,231
Customer deposits
Deposits and placements from banking institutions	78,492	46,763	510,951	301,746	78,492	46,763	510,951	301,746
Other interest expenses	265,497	119,939	267,630	77,861	265,497	119,939	267,630	77,861
Total interest expenses	3,098,176	1,529,096	4,792,793	2,054,055	3,084,111	1,520,556	4,761,053	2,038,838
NET INTEREST INCOME / (LOSS)	9,938,027	4,873,412	18,084,292	8,737,822	9,959,792	4,883,545	18,116,032	8,753,039
NON-INTEREST INCOME	121,683	76,902	339,578	131,894	121,683	76,902	339,578	131,894
Fees and commissions on loans and advances
Other fees and commissions	1,827,044	747,412	3,568,445	1,761,520	2,094,797	905,077	3,809,834	1,882,998
Foreign exchange trading income / (loss)	1,567,336	825,987	2,331,776	1,053,645	1,567,336	825,987	2,331,776	1,053,645
Dividend income	-	-	-	-	-	-	-	-
Other income	751,838	557,506	767,929	365,788	751,807	557,475	767,929	365,788
Total Non-Interest income	4,267,901	2,207,807	7,007,728	3,312,847	4,535,623	2,365,441	7,249,117	3,434,325
TOTAL OPERATING INCOME	14,205,928	7,081,219	25,092,020	12,050,669	14,495,415	7,248,986	25,365,149	12,187,364
OTHER OPERATING EXPENSES	1,371,367	728,333	4,896,355	1,295,045	1,371,367	728,333	4,896,355	1,295,045
Loan loss provision
Staff costs	3,038,052	1,486,099	6,030,394	2,878,174	3,075,669	1,504,285	6,096,766	2,890,505
Directors' emoluments	75,206	37,174	132,567	72,815	75,206	37,174	132,567	72,815
Rental charges	270,042	135,281	512,393	244,288	270,842	135,541	513,607	244,288
Depreciation charge on property and equipment	233,907	118,465	480,980	242,527	233,907	118,465	480,980	242,527
Amortisation charges	232,178	116,089	488,434	229,077	232,178	116,089	488,434	229,077
Other operating expenses	1,746,080	903,412	3,576,920	1,617,749	1,763,647	912,052	3,596,508	1,620,380
Total other operating expenses	6,966,832	3,524,853	16,118,043	6,579,675	7,022,816	3,551,939	16,205,217	6,594,637
Profit / (loss) before tax and exceptional items	7,239,096	3,556,366	8,973,977	5,470,994	7,472,599	3,697,047	9,159,932	5,592,727
Exceptional items	-	-	-	-	-	-	-	-
Profit / (loss) after exceptional items	7,239,096	3,556,366	8,973,977	5,470,994	7,472,599	3,697,047	9,159,932	5,592,727
Current tax	(1,709,934)	(1,093,001)	(3,070,728)	(1,689,353)	(1,774,737)	(1,135,621)	(3,129,245)	(1,725,948)
Deferred tax	(463,260)	28,766	310,197	10,602	(471,548)	21,522	311,740	10,487
Profit / (loss) after tax and exceptional items	5,065,902	2,492,131	6,213,446	3,792,243	5,226,314	2,582,948	6,342,427	3,877,266
OTHER COMPREHENSIVE INCOME	-	-	-	-	-	-	-	-
Gains / (losses) from translating the financial statements of foreign operations
Fair value changes in available for sale financial assets	1,536,826	624,192	(409,535)	(565,260)	1,536,826	624,192	(409,535)	(565,260)
Revaluation surplus on property, plant and equipment	-	-	-	-	-	-	-	-
Share of other comprehensive income of associates	-	-	-	-	-	-	-	-
Income tax relating to components of other comprehensive income	(461,048)	(187,258)	122,861	169,578	(461,048)	(187,258)	122,861	169,578
Other comprehensive income net of tax for the period / year	1,075,778	436,934	(286,674)	(395,682)	1,075,778	436,934	(286,674)	(395,682)
Total comprehensive income for the period / year	6,141,680	2,929,065	5,926,772	3,396,561	6,302,092	3,019,882	6,055,753	3,481,584
EARNINGS PER SHARE - BASIC AND DILUTED (KShs) (March 2016 and 2015 restated)	14.50	7.25	17.60	11.04	14.97	7.52	17.97	11.29
DIVIDEND PER SHARE - DECLARED (KShs)	6.00	-	17.00	-	6.00	-	17.00	-