Standard Chartered Bank Kenya has released its financial results for the period ending 30 September 2025.
Kariuki Ngari, Managing Director and Chief Executive Officer, said, “We have delivered a resilient performance in the third quarter with profit before tax of KShs 13.2 billion, representing a 41 per cent decline compared to the same period last year.” He went on to say, “This decline is due to lower revenues and a one-off employee past service cost of KShs 2.7 billion following the Supreme Court ruling on 5 September 2025 and the Retirement Benefits Appeal Tribunal Orders. I am pleased to inform our stakeholders that we have substantially complied with the RBAT Orders.”
“Our Assets Under Management closed at KShs 290 billion, up 23 per cent from December 2024. This growth was supported by strong wealth management solutions. We continue to execute our strategy of combining cross-border capabilities with leading wealth management expertise, underpinned by a focus on sustainability,” he added.
Financial Performance Overview
Operating income declined by 17% and this was driven by the following factors:
- Net interest income fell by 10 per cent. This was driven by slower volume growth and margin compression due to declining interest rates. The impact was partially offset by lower cost of funds on customer deposits and increased interest income from government securities.
- Non-interest income decreased by 29 per cent. The decline was linked to lower transactional volumes and margins in Transaction Services and Markets.
- Operating expenses rose by 19 per cent. This was primarily due to the one-off employee past service cost of KShs 2.7 billion.
- Impairment losses on loans and advances reduced by 11 per cent due to recoveries, prudent loan book oversight and a continued focus on asset quality.
Balance Sheet Highlights
- Net loans and advances to customers fell by 3 per cent. This was mainly due to reduced activity in transaction services, personal loans and mortgages.
- Non-performing loan ratio improved by 150 basis points to 5.9%
- Customer deposits declined by 4 per cent. Funding quality remains strong, with current and savings accounts comprising 97 per cent of total deposits.
- Liquidity ratio stood at 66.6 per cent, well above the regulatory minimum of 20 per cent.
- Total capital ratio was 20.6 per cent.
Compliance with RBAT Orders
The Bank and the Trustees have complied with the RBAT Orders following the Supreme Court ruling on 5 September 2025. It was directed to refund the surplus withdrawn from the Standard Chartered Kenya Pension Fund in 2000.
The RBAT also ordered payment of KShs 2.5 billion to the appellants. As of 21 November 2025, KShs 1.9 billion had been disbursed to 499 appellants. Thirty per cent of amounts due remain withheld pending adjudication of costs owed to appellants’ representatives. The verification process for the remaining appellants is ongoing.
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Also Read: How Standard Chartered Is Embedding Sustainability in Kenya’s Economic Transformation