Standard Chartered Bank Kenya has issued a profit warning, citing weaker earnings and the looming cost of a multibillion-shilling pension settlement.
- •The bank said it expects its net profit for 2025 to fall at least 25% below 2024 levels due to the impact of the Retirement Benefits Appeals Tribunal (RBAT) ruling.
- •In a notice signed by Board Chairperson Kellen Kariuki, the bank said the pension payments will raise operating costs under IAS 19 Employee Benefits, which requires recognition of past service costs.
- •In its 2024 annual report, Stanchart disclosed several contingent liabilities under legal and regulatory matters, including the RBAT pension case.
The pension matter, involving 629 former employees, was cited as a key legal risk with potential liability exceeding KSh 7B.
The lender’s H1 2025 profit after tax dropped 21.4% to KSh 8.09B, with net interest income down 7.4% to KSh 15.30B and non-interest income down 29.1% to KSh 6.79B. Operating income fell 15.3% to KSh 22.09B.
Five-Year Profit Run Now at Risk
Stanchart had grown profit after tax from KSh 5.44B in 2020 to KSh 20.06B in 2024, alongside a rise in operating income from KSh 26.68B to KSh 50.27B:
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Profit After Tax (KSh Bn) | 5.44 | 9.04 | 12.06 | 13.83 | 20.06 |
| Operating Income (KSh Bn) | 26.68 | 28.30 | 33.09 | 40.86 | 50.27 |
The earnings dip, combined with the expected cost of the pension payout, now threatens to reverse that growth.
