StanChart closed the third quarter with profit down 38% to 9.79 billion, pressured by weaker income and a 2.7 billion pension-related charge booked after the Supreme Court and Retirement Benefits Appeal Tribunal rulings.
- •The lender, in a statement, said the quarter’s performance reflects its compliance with the pension rulings issued in September.
- •Employer contributions to the pension scheme were increased by KSh 2.7 billion, taking cumulative contributions to KSh 4.7 billion, which was recognized as a past service cost under IAS 19.
- •Net loans eased 3% to 146.4 billion, while customer deposits fell 4% to 283.4 billion
Stanchart's pension has also begun paying the ordered KSh 2.5 billion to the 629 appellants. As of 21 November, KSh 1.9 billion had been paid to 499 individuals. A further 30% of each payment remains withheld under High Court directions pending a decision on legal-cost allocation.
Overall, costs increased 19% to 19.23 billion, driven almost entirely by the 2.7 billion past service cost linked to the pension case.
The lender says underlying expenses rose only 1% as it supported business growth and digital upgrades. Loan impairment fell 11% to 1.74 billion on the back of recoveries and closer loan-book oversight. Profit before tax stood at 13.20 billion, down from 22.47 billion a year earlier.
Operating income fell 17% to 32.43 billion on a softer performance in the bank’s core lines. Net interest income declined 10% to 22.27 billion as volume growth slowed and margins tightened in a lower-rate environment. Non interest income dropped 29% to 10.16 billion following reduced transactional activity and thinner margins across transaction services and markets, though wealth solutions continued to expand.
Assets under management rose 23% from December 2024 to KSh 290 billion, supported by continued demand for wealth products.
