Standard Chartered Bank Kenya has reported a 21% decline in profit after tax to KSh 8.09 billion for the half-year ended June 30, 2025, weighed down by lower interest and non-interest income.
Despite the earnings dip, the lender maintained its interim dividend at KSh 8.00 per share, signalling confidence in its capital strength and long-term outlook.
“We remain committed to delivering sustainable returns to our shareholders, even in a challenging environment,” the bank stated.
Income Pressure and Market Headwinds
Operating income fell 15% year-on-year to KSh 22.1 billion, driven by a 29% drop in non-interest income and a 7% decline in net interest income. The bank attributed the performance to subdued trading activity and margin compression.
Profit before tax dropped 25% to KSh 10.9 billion, while operating expenses were contained, down 3% to KSh 11.2 billion. Loan loss provisions eased 25% to KSh 1.18 billion, offering some cushion against the income shortfall.
Balance Sheet Resilience
Customer deposits rose 5% to KSh 290.6 billion, and net loans and advances edged up 2% to KSh 152.2 billion. Gross non-performing loans improved significantly, falling 29% to KSh 9.6 billion—a sign of strengthening asset quality.
Total assets stood at KSh 372.1 billion, slightly lower than the previous year, while shareholder equity grew 2% to KSh 65.6 billion.
“The bank’s ability to sustain its dividend payout amid declining income reflects prudent cost management and a resilient balance sheet,” analysts noted.
StanChart Kenya’s half-year results underscore the impact of macroeconomic pressures on banking income, even as operational efficiency and credit quality continue to improve.
