Listed lender Standard Chartered Bank Kenya has recorded a 21% decline in after-tax profit to KES 8.1 billion in the first six months ended June 30, 2025, down from KES 10.2 billion in the same period last year. The dip was largely driven by a decline in both interest and non-interest income.
Net Interest income dropped 7.4% to KES 15.3 billion as a result of falling interest rates in the economy. However, the lower rates lowered the interest costs of customer deposits by 19.4% to KES 1.8 billion. Non-interest income fell 29.1% to KES 6.8 billion year-over-year, primarily due to reduced income from fees and commissions, as well as foreign exchange trading income. Consequently, operating income shrank 15.3% to KES 22.1 billion, from KES 26.1 billion in H1 2024.
“The non-interest income decrease of 29 per cent came from a decline in transactional volumes and margins in transaction services, markets, and wealth solutions. This was partly mitigated by growth in trading income wealth solutions,” said Standard Chartered Kenya CEO, Kariuki Ngari.
StanChart saw its operating expenses contract 3.4% to KES 11.2 billion from KES 11.6 billion in H1 2024, attributed to prudent cost management. Profit before tax went down 24.8% to KES 10.9 billion. Profit after tax edged down 21.4% to KES 8.1 billion.
Despite the slump in after-tax profit, StanChart maintained its dividend at KES 8 per share. Total dividends totaled KES 3.02 billion, payable on October 7, 2025, to shareholders on the register as at September 11.
Standard Chartered Balance Sheet
The bank’s asset base marginally contracted 1.4% to KES 372.1 billion year-on-year. Total equity edged up 2.3% to KES 65.6 billion from KES 64.1 billion, underpinned by growth in retained earnings, capital grants, and fair value. Customer deposits increased by 5.1% to KES 290.6 billion, while the loan book expanded 1.9% to KES 152.2 billion from KES 149.3 billion in the first half of 2024.
Standard Chartered Banking Ratios
Core capital ratio improved to 19.35%, more than two-fold the minimum statutory requirement, reflecting the bank’s financial stability. Cost-to-income ratio rose to 50.7% reflecting improved efficiency. Loan-to-Deposit Ratio fell to 52.4%, while liquidity ratio improved to 64.47%, more than threefold the minimum statutory requirement.
Further disclosures
Asset quality improved as gross non-performing loans declined by 29.4% to KES 9.6 billion, while net non-performing loans fell by 11.7% to KES 1.8 billion, reducing the lender’s credit risk exposure and cementing financial stability. Core capital rose 3.1% to KES 56.2 billion, well above the minimum statutory requirement of KES 1 billion by the Central Bank of Kenya (CBK).
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