Standard Chartered Bank Kenya has reported a 12 percent decline in profit before tax to KSh9.6 billion for the six months ended June, as a sharp drop in net interest income offset gains in wealth management and foreign exchange revenues.

During the half, net interest income fell 20 percent to KSh12.3 billion largely attributable to the impact of a prolonged interest rate cut cycle that has compressed lending margins to their weakest level in five years.

StanChart's revenue from loans and advances declined as the bank struggled to reduce interest expenses at the same pace as falling lending yields.

The lender, which operates 36 branches across Kenya, saw total operating income decline by 9 percent to KSh20.1 billion.

Non-interest income rose 16 percent to KSh7.9 billion, driven by higher transaction volumes in foreign exchange and stronger wealth solutions revenues, providing some cushion against the margin compression.

Operating expenses remained broadly flat at KSh10 billion, reflecting cost management measures and continued efficiency focus.

Asset quality improves

The bank reported a 57 percent reduction in impairment losses on loans and advances to KSh508 million, with the non-performing loan ratio improving by 40 basis points to 5 percent.

Customer deposits rose by 9 percent to KSh309 billion, driven by corporate deposit growth, with current and savings accounts accounting for 95 percent of total deposits. 

At the same time, net loans and advances to customers increased 10 percent to KSh169 billion, with growth concentrated in transaction banking and wealth solutions.

Assets under management grew 13 percent to KSh343 billion compared with December 2025, reflecting progress in the bank’s strategy to grow client wealth.

Capital strength

The bank’s total capital ratio stood at 18.2 percent, well above the 14.5 percent regulatory minimum. The liquidity ratio remained strong at 67.3 percent, with the liquidity coverage ratio at 558 percent against the 100 percent minimum.

Directors announced an interim dividend of KSh8.50 per share, payable to shareholders on the register as of 10 September. This compares with KSh45 per share paid for the full 2025 financial year.

The results come against a backdrop of leadership changes, with Birju Sanghrajka taking over as Managing Director and CEO in April following the departure of Kariuki Ngari after more than two decades at the bank.

“Our capital remains strong,” Sanghrajka said. “This performance demonstrates the strength of our client franchise, differentiated cross-border network and market-leading wealth capabilities.”

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