Standard Chartered Bank Kenya has reported a profit before tax of KShs 13.2 billion for the quarter ending 30 September 2025, marking a 41% decline compared to the same period last year.
The drop was primarily attributed 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 (RBAT) Orders.
Kariuki Ngari, Managing Director and CEO, said, “We have delivered a resilient performance in the third quarter despite the challenging operating environment. I am pleased to inform our stakeholders that we have substantially complied with the RBAT Orders.”
Ngari noted that the bank’s Assets Under Management (AUM) grew to KShs 290 billion, up 23% from December 2024, driven by strong wealth management solutions.
“Our strategy of combining cross-border capabilities with leading wealth management expertise, underpinned by a focus on sustainability, continues to deliver results,” he added.
Financial Performance Overview
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Operating income declined 17%, affected by slower growth in net interest income and compressed margins.
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Net interest income fell 10%, reflecting slower loan volume growth and declining interest rates, partially offset by lower funding costs on customer deposits and increased government securities income.
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Non-interest income dropped 29%, linked to lower transactional volumes and reduced margins in Transaction Services and Markets.
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Operating expenses rose 19%, primarily due to the one-off employee past service cost of KShs 2.7 billion.
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Impairment losses on loans and advances declined 11% thanks to recoveries and prudent oversight of the loan book.
Balance Sheet Highlights
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Net loans and advances to customers decreased 3%, largely due to reduced activity in transaction services, personal loans, and mortgages.
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Non-performing loan ratio improved by 150 basis points to 5.9%.
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Customer deposits fell 4%, though funding quality remains strong, with current and savings accounts accounting for 97% of total deposits.
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Liquidity ratio stood at 66.6%, well above the 20% regulatory minimum.
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Total capital ratio was 20.6%.
Following the Supreme Court ruling, the bank and trustees have largely complied with RBAT directives, including refunding the surplus withdrawn from the Standard Chartered Kenya Pension Fund in 2000.
The tribunal also mandated payment of KShs 2.5 billion to appellants. As of 21 November 2025, KShs 1.9 billion had been disbursed to 499 appellants, with the remaining 30% pending verification and adjudication of costs owed to appellants’ representatives.
