Standard Chartered Bank Kenya has reported a profit before tax of Sh9.6 billion for the first half of 2026, representing a 12 percent decline from the Sh10.9 billion recorded during the same period last year.
The lender's financial results for the six months ended June 30 show that profit after tax fell 17 percent to Sh6.727 billion, from Sh8.087 billion in the first half of 2025.
Despite the decline in earnings, the bank announced an interim dividend of Sh8.50 for every ordinary share of Sh5. The dividend will be paid on or about September 24 to shareholders on the register at the close of business on September 10.
Managing Director and Chief Executive Officer Birju Sanghrajka said the bank remained financially strong, supported by growth in client assets, deposits and lending.
“The Bank delivered a profit before tax of Sh9.6 billion. Our capital remains strong, and the directors are pleased to announce an interim dividend of Sh8.50 for every ordinary share of Sh5.00 to be paid to shareholders on the register at the close of business on September 10, 2026 and will be paid on or about September 24, 2026.”
Operating income declined nine percent to Sh20.138 billion, compared with Sh22.086 billion in the first half of 2025.
Net interest income was the main drag on performance, falling 20 percent to Sh12.273 billion from Sh15.301 billion. The bank attributed the decline to rate and margin pressures, which outweighed growth in business volumes.
Non-interest income, however, increased 16 percent to Sh7.865 billion, supported by stronger performance in Wealth Solutions and higher foreign exchange transaction volumes.
Operating expenses remained broadly stable at Sh10.045 billion, compared with Sh10.008 billion a year earlier, as the bank continued to focus on cost management and efficiency.
Loan impairment losses declined 57 percent to Sh508 million from Sh1.177 billion, reflecting what the bank described as resilient overall credit quality.
The lender's balance sheet expanded by 15 percent from December 2025, supported by growth in client assets and deposits.
Loans and advances to customers increased 10 percent to Sh169.166 billion, up from Sh154.307 billion at the end of December 2025. Customer deposits rose nine percent to Sh309.113 billion from Sh283.452 billion.
Corporate deposits were a key driver of the increase, while current and savings accounts accounted for 95 percent of total customer deposits.
The bank's non-performing loan ratio improved by 40 basis points to five percent, indicating an improvement in the quality of its loan portfolio.
Assets under management rose 13 percent to Sh343 billion from December 2025, as the bank continued to expand its wealth management business.
“This performance demonstrates the strength of our client franchise, differentiated crossborder network and market-leading wealth capabilities, as we continue to support clients in achieving their financial objectives and deliver sustainable growth.”
Standard Chartered Kenya reported a liquidity ratio of 67.3 percent, well above the regulatory minimum of 20 percent. Its liquidity coverage ratio stood at 558 percent and net stable funding ratio at 170 percent, compared with the 100 percent minimum for both measures.
The total capital ratio stood at 18.2 percent against a regulatory minimum of 14.5 percent.
The bank said Kenya's economic environment remained stable, supported by low inflation, a stable currency and lower interest rates, although global geopolitical tensions and uncertainty continued to pose risks.
Sanghrajka said the bank would continue focusing on clients and areas where it has a competitive advantage while adapting to changes in the global economic environment.