As of May 22, 2025, Standard Chartered Bank Kenya Limited has released its Q1 2025 financial statements and disclosures, offering a snapshot of its performance amid Kenya’s dynamic banking landscape.

With total assets dipping by 2.3% to KES 382.3 billion and profit after tax (PAT) declining by 13.5% to KES 4.86 billion, the bank’s results raise questions about its resilience compared to peers.

A Closer Look at Total Assets and Loans

Standard Chartered Kenya’s total assets stood at KES 382.3 billion as of March 31, 2025, reflecting a 2.3% year-on-year (YoY) decline from KES 391.3 billion in Q1 2024.

This contraction, detailed in the consolidated balance sheet, contrasts with the banking sector’s growth, driven by Kenya’s $133.2 billion mobile money market (GSMA, 2023).

Loans and advances to customers also fell by 10.2% to KES 137.9 billion, signalling a cautious lending approach amid economic uncertainties.

For businesses seeking loans from Standard Chartered Kenya, this reduction might indicate tighter credit policies, a shift from the aggressive lending seen in competitors like NCBA Bank.

READ ALSO:

What Makes Taasi Loans Different From Other Mobile Lending Options?

Net Interest Income and Profitability Challenges

Net interest income (NII) saw a modest 0.8% decline to KES 8.2 billion, a critical revenue stream for banks.

This slight dip, despite a robust interest income of KES 9.2 billion, suggests pressure from rising interest expenses, which rose to KES 9.2 billion.

Profit after tax (PAT) dropped 13.5% to KES 4.86 billion, with earnings per share (EPS) falling 11.6% to KES 12.75.

This performance lags behind peers like KCB Group, which reported growth in 2024, highlighting potential inefficiencies or increased operational costs.

Investors tracking Standard Chartered Kenya profits may see this as a red flag, though the bank’s core capital of KES 53.8 billion remains strong.

Provisions and Non-Performing Loans

A silver lining emerges with provisions dropping 24.7% to KES 412.5 million, reflecting improved asset quality.

Gross non-performing loans (NPLs) decreased by 26.1% to KES 12.2 billion, with net NPLs at KES 7.9 billion, strengthened by a loan loss provision of KES 5.3 billion.

This reduction, from KES 16.5 billion in gross NPLs in Q1 2024, indicates better risk management. The NPL ratio improved to 6.13%, below the statutory minimum of 14.5%, showcasing resilience despite the asset decline.

Foreign Exchange Trading Income Decline

Foreign exchange (FX) trading income took a significant hit, dropping 59.1% to KES 1.03 billion from KES 2.5 billion in Q1 2024.

This sharp decline, detailed in the profit and loss account, reflects volatility in global currency markets, a challenge for banks with international exposure like Standard Chartered.

Customer Deposits and Liquidity

Customer deposits fell 6.8% to KES 285.2 billion, a concern for liquidity in a market where mobile money accounts grew to 1.75 billion in 2023 (GSMA).

The liquidity ratio of 73.64% exceeds the statutory minimum of 20%, providing a buffer. However, this deposit drop, alongside a 10.2% loan reduction, may signal waning customer confidence or competition from digital lenders like M-PESA-integrated platforms.

Capital Strength and Future Outlook

Standard Chartered Kenya maintains a solid capital base, with core capital at KES 53.8 billion and supplementary capital at KES 18.1 billion, yielding a total capital of KES 71.9 billion.

The capital adequacy ratio of 19.75% surpasses the 14.5% statutory requirement, offering stability. Yet, the asset contraction and profit decline suggest a need for strategic realignment.

As of Q1 2025, the bank’s focus on risk management and cost control could pave the way for recovery, especially with a dividend of KES 45.00 per share declared.

READ ALSO:

Standard Chartered Kenya Reports 64% Profit Surge in Q3 2024

What This Means for Kenya’s Banking Sector

Standard Chartered Kenya’s Q1 2025 results reflect a cautious stance in a competitive market, where digital banking and mobile money innovations dominate.

The 2.3% asset decline and 13.5% PAT drop contrast with the sector’s growth, driven by Kenya’s leadership in 62 billion mobile transactions in 2023 (GSMA).

As the year progresses, Standard Chartered’s ability to reverse these trends through new lending products or enhanced FX strategies will be critical.

For customers and businesses, these results highlight the importance of monitoring bank performance in a dynamic financial landscape.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.

Glossary of Terms

1. Total Assets
The sum of everything a bank owns or controls that has economic value, including cash, loans, investments, and property.

2. Profit After Tax (PAT)
The bank’s net income after all expenses and taxes have been deducted. It reflects the actual profit available to shareholders.

3. Year-on-Year (YoY)
A comparison of financial figures from the same period in the previous year. It helps track growth or decline.

4. Consolidated Balance Sheet
A financial statement that presents the combined assets, liabilities, and equity of a bank and its subsidiaries as a single entity.

5. Loans and Advances to Customers
The money lent to individuals and businesses by the bank, expected to be repaid with interest over time.

6. Net Interest Income (NII)
The difference between the income a bank earns from lending (interest income) and the cost it pays on deposits (interest expense).

7. Interest Income
Revenue generated from the bank’s lending activities, such as personal loans, mortgages, or corporate financing.

8. Interest Expenses
The cost a bank incurs for borrowing funds, usually by paying interest on customer deposits or other debts.

9. Earnings Per Share (EPS)
A measure of a company’s profitability, calculated as PAT divided by the number of outstanding shares. It indicates the value of profit for each share held.

10. Core Capital
The bank’s primary funding source, including equity capital and disclosed reserves. It provides a cushion against potential losses.

11. Provisions
Funds set aside by the bank to cover potential loan losses, reflecting the bank’s expected credit risk.

12. Non-Performing Loans (NPLs)
Loans where the borrower has stopped making repayments, typically for 90 days or more. High NPL levels indicate credit risk.

13. Loan Loss Provision
A reserve the bank creates to cover estimated future loan defaults. It reduces taxable income but improves financial prudence.

14. NPL Ratio
The proportion of non-performing loans to total loans. A lower ratio suggests better asset quality and risk management.

15. Statutory Minimum
The minimum regulatory threshold set by the Central Bank (e.g., for capital adequacy or liquidity) that financial institutions must meet to remain compliant.

16. Foreign Exchange (FX) Trading Income
Revenue earned from trading currencies. Banks with global operations often generate income from currency fluctuations and customer FX transactions.

17. Liquidity Ratio
A measure of the bank’s ability to meet short-term obligations using liquid assets. A higher ratio indicates strong financial health.

18. Supplementary Capital
Additional capital like subordinated debt or hybrid instruments that supports the bank’s financial stability beyond core capital.

19. Capital Adequacy Ratio (CAR)
A key regulatory metric that assesses a bank’s capital in relation to its risk-weighted assets. It shows the bank’s ability to absorb losses.