Listed lender Standard Chartered Bank Kenya has posted a 13.5% decline in net profit to KSh 4.86 billion in Q1 2025, marking its first earnings contraction in recent years.
- •The drop was largely driven by a 59.1% plunge in forex trading income, which weakened overall non-interest revenue.
- •In addition to reduced trading income, StanChart Kenya saw a contraction in net loans and customer deposits, pointing to more cautious credit deployment and shifting deposit dynamics.
- •The capital adequacy ratio rose to 20.63%, well above the 14.5% minimum, while liquidity improved to 73.64%, indicating a healthy cushion to manage near-term uncertainty.
Net interest income remained steady at KSh 8.21 billion, slipping just 0.8% year-on-year. However, non-interest income fell sharply to KSh 3.39 billion, down from KSh 4.79 billion in Q1 2024. As a result, total operating income declined 11.2% to KSh 11.60 billion, reversing the double-digit growth seen over the past two years.
Key Metrics – Q1 2025 vs Q1 2024
| Metric | Q1 2025 | Q1 2024 | YoY Change |
|---|---|---|---|
| Operating Income | KSh 11.60Bn | KSh 13.06Bn | ▼ 11.2% |
| Net Interest Income | KSh 8.21Bn | KSh 8.27Bn | ▼ 0.8% |
| Non-Interest Income | KSh 3.39Bn | KSh 4.79Bn | ▼ 29.3% |
| Profit Before Tax (PBT) | KSh 6.64Bn | KSh 7.64Bn | ▼ 13.2% |
| Profit After Tax (PAT) | KSh 4.86Bn | KSh 5.62Bn | ▼ 13.5% |
| Net Loans to Customers | KSh 137.86Bn | KSh 153.58Bn | ▼ 10.2% |
| Customer Deposits | KSh 285.21Bn | KSh 306.01Bn | ▼ 6.8% |
| Total Assets | KSh 382.26Bn | KSh 391.34Bn | ▼ 2.3% |
| Govt Securities (FVOCI) | KSh 89.27Bn | KSh 103.07Bn | ▼ 13.4% |
| FX Trading Income | KSh 1.03Bn | KSh 2.53Bn | ▼ 59.1% |
| Capital Adequacy Ratio (CAR) | 20.63% | 18.45% | ▲ +2.18 pp |
Despite the profit decline, the bank’s capital and liquidity buffers remain strong.
The drop in net loans (▼10.2%) and customer deposits (▼6.8%) highlights a cautious approach in credit deployment and funding strategy. However, loan loss provisions declined to KSh 0.41 billion, down from KSh 0.79 billion last year, reflecting stable asset quality.
Q1 Performance Trend – 2020 to 2025
| Metric | Q1 ’20 | Q1 ’21 | Q1 ’22 | Q1 ’23 | Q1 ’24 | Q1 ’25 |
|---|---|---|---|---|---|---|
| Operating Income (KSh Bn) | 6.96 | 7.08 | 7.41 | 10.76 | 13.06 | 11.60 |
| Net Interest Income | 4.71 | 4.72 | 4.92 | 6.89 | 8.27 | 8.21 |
| Non-Interest Income | 1.90 | 2.24 | 2.49 | 3.87 | 4.79 | 3.39 |
| Profit Before Tax (PBT) | 2.91 | 3.40 | 3.93 | 5.64 | 7.64 | 6.64 |
| Profit After Tax (PAT) | 2.01 | 2.39 | 2.76 | 4.03 | 5.62 | 4.86 |
| Net Loans to Customers | 125.54 | 117.87 | 128.09 | 137.11 | 153.58 | 137.86 |
| Customer Deposits | 243.55 | 265.25 | 265.38 | 302.95 | 306.01 | 285.21 |
| Total Assets | 311.48 | 339.26 | 340.91 | 388.64 | 391.34 | 382.26 |
| Govt Securities (FVOCI) | 89.27 | 91.12 | 89.15 | 92.90 | 103.07 | 89.27 |
| FX Trading Income | 0.70 | 0.81 | 1.02 | 2.19 | 2.53 | 1.03 |
| Capital Adequacy Ratio (%) | 18.02 | 18.34 | 17.62 | 17.53 | 18.45 | 20.63 |
