StanChart Kenya Profit Drops Despite Improved Loan Book in Q3 2025
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Standard Chartered Bank Kenya (StanChart Kenya) saw its profits decline in the third quarter of 2025, even as the bank strengthened its capital position and recorded one of the lowest non-performing loan (NPL) levels in recent years.
Total assets grew to KES 384.44 billion, supported by shareholders’ funds of KES 63.78 billion, allowing the balance sheet to expand despite slower customer activity.
Lending to customers eased to KES 146.40 billion, while deposits dipped slightly to KES 283.43 billion, resulting in a loan-to-deposit ratio of 51.65%, down from 2024.
Interest income rose to KES 25.14 billion, with interest expenses at KES 2.86 billion, yielding net interest income of KES 22.27 billion.
Non-interest income fell slightly to KES 10.16 billion, bringing total operating income to KES 32.43 billion, primarily driven by interest earnings.
Operating costs increased sharply to KES 19.23 billion, driven by higher administrative and staff expenses.
The cost-to-income ratio (excluding provisions) rose to 53.90% from 37.47% a year earlier, reducing operational efficiency and affecting profitability.
Profit before tax stood at KES 13.20 billion, while profit after tax declined to KES 9.79 billion.
Despite the lower earnings, asset quality improved significantly, with gross NPLs falling to KES 9.13 billion from KES 12.44 billion in 2024.
The reduction in NPLs strengthened the bank’s balance sheet during a period when some peers were reporting rising credit pressures.
StanChart Kenya ended Q3 2025 with a book value per share of KES 284.00 and a price-to-book ratio of 16.80
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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