Standard Chartered Bank Kenya has reported a Sh8.1 billion net profit for the six months ended June 30, 2025, a 21.4 per cent decline from the Sh10.3 billion posted in the same period last year.
The lender’s income contracted across key segments.
Total operating income slid to Sh22.1 billion, down 15 per cent from Sh26.1 billion a year earlier.
Net interest income fell seven per cent to Sh15.3 billion, a drop the bank linked to lower lending volumes and squeezed margins as interest rates continued to ease.
Non-interest income shrank more sharply, dipping 29 per cent to Sh6.8 billion.
Read More
Management attributed the fall to reduced transaction activity and slimmer earnings from markets, transaction services, and wealth management products.
Profit before tax stood at Sh10.9 billion, marking a 25 per cent year-on-year decline.
According to Kariuki Ngari, the Chief Executive Officer and Managing Director of Standard Chartered Bank Kenya, the half-year results underscored both resilience and pressure on earnings.
“Our performance in the first half of 2025 was solid, delivering profit before tax of Sh10.9 billion, albeit a 25 per cent drop year on year,” Ngari remarked.
Expenditure during the review period held steady, supported by what the bank described as prudent cost controls alongside continued investment in growth and digital channels.
Loan impairment charges eased 25 per cent, aided by recoveries and a sharper focus on asset quality, while the balance sheet remained “strong, liquid and well capitalised,” according to management.
Customer lending was broadly unchanged, with net loans and advances standing at Sh152.2 billion compared to Sh151.6 billion in the corresponding period last year.
Deposits dropped two per cent to Sh290.6 billion, reflecting lower customer balances, although funding quality stayed high with current and savings accounts making up 97 per cent of the total.
The lender’s liquidity ratio stood at 64.5 per cent, far above the 20 per cent regulatory requirement.
Ngari, in his assessment of the broader environment, said Kenya’s economy was supportive but global conditions remained uncertain.
“The Kenyan economic environment remains stable with low inflation, stable currency and lower interest rates. However, we are conscious of the headwinds associated with growing complexities and uncertainties in the global macroeconomic environment,” Ngari stated.
He further emphasised the bank’s capital position, noting that the institution is well placed to sustain client lending.
“This leaves our total Capital Ratio at 19.7 per cent and 520 basis points above the regulatory minimum, providing a strong base to continue supporting our clients’ borrowing needs as interest rates continue to ease.”
Despite the weaker earnings, the institution's board announced that shareholders will still receive an interim dividend of Sh8 for every ordinary share of Sh5.
The payout will go to those listed in the register by September 11, 2025, with payment expected on or about October 7, 2025.
