The bank seems to be learning its lesson. Going by falling interest income in customer loans and advances, it appears the liberal lending which is partly to blame for upsurge in NPLs may be over. The one off "other income" relating to 1.4B gain on property sale in 2014 partly explains the decline this period.

Did you advise him/her when to buy? If you didn't, what makes you think you owe him/ her advise on what to sell.

@Sparkly Okay. He inherited from the farther in 2013. He wants his portfolio to grow without buying more and targeted 500/- a share.. Surely 500/- was and still is a distance. I had to advise him sell them high...buy other stocks at low...sell high...come back to stanchart when about @250. I might have been wrong.

"One large name ... deteriorated in Q1 2015 and we had to take a lumpy impairment charge in March 2015 which has increased
the impairment charge compared to the same period last year and this has impacted our bottom line,"

I wonder who the large name is? KQ? Mumias? Uchumi?


"Bad debts jumped in the first half of last year after the bank started treating loans that had not been repaid for three months as bad rather than six months previously."

What is the loan inactive period other Kenyan banks are using? 3 or 6 months?


"We also see our NPL ratio coming back to within, or below, the industry ratio of 5.7 per cent in the next six to 12 months,"

What i understand from above is that the large name?? in the 2nd half has began servicing the 'bad loan'...so expect a big jump in Standard Chartered profits 3Q or full year 2015. LLP spiked 249% in Q1 2015 vs Q1 2014, and in Q2 was 51%. If as Stanchart says that by End 2015 LLP will be at industry average of 5.7% then it looks full year profit will place it around No. 4 after KCB,Equity, Co-op. Stanchart always pulls a surprise on 3rd quarter or full year.

It could also be a deterioration of relationship with the large customer leading to loss of that account, e.g. Though fairly green in financial jargon, the statement seems really vague and unhelpful towards determining cause of impairment charge.

Looks like KQ but why should they have hopes of recovery in the next 6 months if its KQ?

The amount (~1B) sounds like a property developer. This massionettes/apartments are not moving, but there is hope they will in the next 6 months.

Okay @ 190/- now @Sparkly is long term still valid?

I like Stanchart. I like it even more at 150.

From high of 330 just this year to 190 now it has shed 140/- which is around 42%.