StanChart to make dividend payout despite 21pc dip in half-year earnings
Business
By
Macharia Kamau
| Aug 21, 2025
Standard Chartered Bank CEO Kariuki Ngari during a past investor briefing. [File, Standard]
Standard Chartered (StanChart) Bank Kenya has reported a 21 per drop in profit for the six months to June 30 this year.
The lender on Wednesday said its profit after tax declined to Sh8.1 billion over the half from Sh10.3 billion over a similar period last year.
Despite the drop, the bank said it would pay an interim dividend of Sh8 per share.
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The drop in profit after tax was on account of lower net interest income, which decreased by seven per cent to Sh15.3 billion over the half from Sh16.5 billion over a similar period in 2024.
The lower interest income, the bank said, was due to volume decline as well as lower margins on account of declining interest rates.
The Central Bank, in recent months, lowered the Central Bank Rate from a high of 13 per cent in early 2024 to 9.5 per cent this month, with banks taking the cue and lowering their lending rates.
Stan Chart, however, registered growth in interest income from government securities.
“The directors are pleased to announce the payment of an interim dividend of Sh8 for every ordinary share of Sh5 to be paid to shareholders on the register as at the close of business on 11 September 2025 and will be paid on or about 7 October 2025,” said Chief Executive Kariuki Ngari.
“This leaves our total capital ratio at 19.7 per cent and 520 basis points (5.2 per cent) above the regulatory minimum, providing a strong base to continue supporting our clients’ borrowing needs as interest rates continue to ease.”
The bank also said that its non-interest income decreased by 29 per cent owing to a decline in transactional volumes and margins in transaction services, markets and wealth solutions. This was partly mitigated by growth in trading income and wealth solutions.
Its operating expenses remained flat, which it attributed to prudent cost management, investments to fund business growth and digital capabilities continuing to deliver efficiencies.
Impairment losses on loans and advances reduced 25 per cent, which the bank said was due to high recovery rates as well as prudent oversight of the loan book and a continued focus on asset quality.
The bank said that its balance sheet remains strong, highly liquid and well capitalised.
“The Kenyan economic environment remains stable with low inflation, stable currency and lower interest rates. However, we are conscious of the headwinds associated with growing complexities and uncertainties in the global macroeconomic environment,” said Ngari.
“We remain resolute in the belief in the strength of our strategy and resilience of our people in supporting our clients navigate these challenging times.”