As at the end of the third quarter of the 2025 financial year, Standard Chartered Bank Kenya Limited announced a profit after tax of KES 9.786 billion, a 38% decline from the KES 15.846 billion recorded in the corresponding period in 2024. This pronounced decline in profitability by Standard Chartered is directly attributable to a combination of reduced overall revenue (17% decline in operating income) and a significant, non-recurring charge of KES 2.7B related to employee pension obligations.
Key Drivers of Standard Chartered’s Performance
The primary factor impacting Standard Chartered bank’s results was a past service cost of KES 2.7 billion. This expense was incurred in compliance with a Supreme Court ruling and subsequent Orders issued by the Retirement Benefits Appeal Tribunal (RBAT) concerning the Standard Chartered Kenya Pension Fund. This singular event exerted considerable pressure on the bank’s earnings.
A detailed examination of the financial highlights reveals a 41% decrease in Profit Before Tax, which fell to KES 13.204 billion from KES 22.469 billion in the prior year. Total operating income saw a 17% reduction to KES 32.429 billion. This was driven by a 10% contraction in Net Interest Income, due to lower volume growth and margin compression, and a more significant 29 per cent drop in Non-Interest Income, despite a noted growth in the Wealth Solutions segment.
In his commentary on the results, Kariuki Ngari, the Managing Director and Chief Executive Officer, of Standard Chartered described the quarter’s performance as resilient in the face of a significant financial headwind. He confirmed that the bank has now substantively discharged the Orders issued by the RBAT. Mr. Ngari further highlighted a key positive outcome, noting a 23 per cent growth in Assets Under Management (AUM) since December 2024, which closed at KES 290 billion.
This growth was bolstered by strong performance in wealth solutions, underscoring the continued successful execution of the bank’s strategy, which leverages its differentiated cross-border capabilities and leading wealth management expertise, all underpinned by a commitment to sustainability.
Beyond the headline figures, several other key metrics demonstrate Standard Chartered’s underlying financial health and prudent management. Loan impairment losses decreased by 11 per cent, reflecting successful recoveries and diligent asset quality management. The Non-Performing Loan (NPL) ratio showed marked improvement of 150 basis points to 5.9 per cent from December 2024.
The bank’s capital and liquidity positions remain robust, with a liquidity ratio of 66.6% and a Total Capital Ratio of 20.6%, both figures standing comfortably well above their respective regulatory minimums. While Customer deposits declined by 4% from the end of the previous year, the funding quality remains exceptionally high, with Current and Savings Accounts (CASA) constituting 97% of the total deposit base.
Regarding the pension fund matter, the Bank and the Scheme’s Trustees have taken comprehensive action to comply with the judicial directives. The Bank increased its employer contributions by KES 2.7 billion in September 2025, bringing the cumulative contribution to KES 4.7 billion. This action fulfilled the order to refund the surplus withdrawn in the year 2000, with subsequent funding and interest factored in.
Furthermore, the process of disbursing the KES 2.5 billion payment to the 629 appellants is well underway. As of November 21, 2025, the Scheme’s Trustees have verified and discharged KES. 1.9 billion to 499 appellants, with the verification process for the remaining individuals continuing diligently. The Scheme is confirmed to be well-funded to meet all its obligations.
