Standard Chartered Bank of Kenya has reported a net profit of Sh9.8 billion for the nine-month period ended September 30, 2025, a drop of 38.2 per cent from the Sh15.8 billion reported during the same period last year.
The drop in profitability is attributable to a drop in operating income and one-off pension payout.
Kariuki Ngari, Managing Director and Chief Executive Officer, said:
“We have delivered a resilient performance in the third quarter with profit before tax of Sh13.2 billion, a 41 per cent drop year on year on account of revenue reduction and a one-off employee past service cost of Sh2.7 billion following the Supreme Court ruling on 5 September 2025 and the Retirement Benefits Appeal Tribunal (RBAT) Orders."
"I am pleased to inform our stakeholders that we have substantively discharged the Orders issued by the RBAT.”
The bank’s operating income fell by 17 per cent to Sh32.4 billion, down from Sh39.1 billion reported during the same period last year as both net interest income and non-interest income declined.
Interest income from loans dropped 21 per cent to Sh13.6 billion on account of shrinking loan book and falling interest rates. The bank’s loan book declined by 3 per cent to Sh146.4 billion.
Non-interest income fell by 29 per cent to Sh10.2 billion, with the drop mainly driven by 59 per cent drop in forex earnings to Sh2.7 billion, down from Sh6.6 billion reported during the same period last year.
The shilling has been stable over the last one year limiting the margins banks can earn on foreign exchange trading.
The bank’s operating expenses jumped 15.9 per cent due to a rise in staff cost, which rose by due to one-off pension payout to settle the pension claim awarded to former employees by Supreme Court.
The lender disclosed it increased employer contributions to the Standard Chartered Kenya Pension Fund (the Scheme) by Sh2.7 billion bringing the total the bank has contributed to the scheme to Sh4.7 billion to comply with Retirement Benefits Appeals Tribunal (RBAT) orders.
Consequently, the bank recognized a past service cost of the employer contributions of Sh2.7 billion in the income statement as guided by financial reporting standard, IAS 19.
The bank further revealed that the scheme has already paid about Sh1.9 billion to 499 appellants and withheld 30 per cent of the amounts to be paid to the appellants pending determination of costs due to be paid to appellant’s representatives in the case.
In September, the bank issued a profit warning cautioning investors that it expects net earnings to fall by at least 25 per cent due to costs associated with settling the pension claims after Supreme Court ruled in favor of the 629 appellants.
