Standard Chartered Bank Kenya (NSE: SCBK) reported a sharp drop in full-year earnings on Wednesday, with net profit declining 38% to KSh 12.44 billion for the year ended December 31, 2025, a result weighed down by falling interest rates, a stabilising shilling, and a KSh 2.6 billion one-time pension charge. Yet, despite the decline, the result ranks as the third-highest profit in the bank’s history, behind FY2024 (KSh 20.06 billion) and FY2023 (KSh 13.84 billion).
The results arrive at a pivotal moment for SCBK, as the bank enters a leadership transition and an increasingly competitive Kenyan banking sector. CEO Kariuki Ngari is set to retire on April 16 after a 24-year career at the lender, with Birju Sanghrajka appointed as his successor pending regulatory approvals. TechArena
Standard Chartered Earnings Breakdown
Total operating income fell 16.5% to KSh 42.30 billion, broadly in line with FY2023 levels, underscoring that the FY2024 result was amplified by exceptional forex conditions rather than a structural step-up in earnings power.
Net interest income, the largest revenue line for Standard Chartered, declined 13.2% to KSh 28.89 billion, as interest on loans and advances fell 25.9% to KSh 16.92 billion amid Kenya’s easing rate environment. The bank partially offset margin compression by growing government securities income 14.3% to KSh 11.15 billion, driven by volume expansion, with the portfolio closing at KSh 96.90 billion.
The sharper revenue pain came from non-interest income. Foreign exchange trading income collapsed 58.6% to KSh 3.42 billion from KSh 8.27 billion, as the shilling’s 2025 stabilisation unwound the forex tailwind that had inflated FY2024 revenues.
On costs, operating expenses rose 13.3% to KSh 25.47 billion, with the KSh 2.6 billion one-off pension charge from a 16-year legal dispute with 629 former employees adding significant pressure to the bottom line.
Ngari, commenting on Standard Chartered’s strategic direction, said the wealth business “is an area of strategic focus that should continue to grow in the range of 27%,” a signal of where SCBK sees its durability beyond the volatile trading and forex income lines. Assets under management closed at KSh 302 billion, up 29% year on year, lending credibility to that thesis.
The pivot from transactional banking to fee-generating wealth solutions is fast becoming SCBK’s most important structural narrative, mirroring wider shifts across Kenya’s top-tier banks, as seen in recent consolidation moves shaping the competitive landscape.
Share Performance and Dividend
Standard Chartered share price began 2026 at KSh 300 per share and has gained 16.8% year-to-date, reaching KSh 350 in late February. The run suggests the market had largely priced in earnings normalisation well ahead of the results release. The YTD gain of 16.8% makes SCBK one of the more constructive stories on the NSE banking index, a broader trend that has seen Kenyan bank stocks attract significant investor interest in 2026.
The dividend cut, however, is a concrete signal of management caution. The board proposed a final ordinary dividend of KSh 23.00 per share, bringing total declared dividends for the year to KSh 31.00, compared to KSh 45.00 in FY2024. This is a 31% reduction in total payout, reflecting both the earnings decline and the board’s decision to preserve capital as we head into a period of rate uncertainty and leadership change.
Leadership Transition and the Road Ahead
The FY2025 results for Standard Chartered mark the final full-year earnings cycle under Ngari’s tenure. His seven-year leadership was defined by a digital transformation that moved over 90% of the bank’s transactions to digital channels, a legacy that positions SCBK well against the fintech competition reshaping Kenyan retail banking.
The Board noted that Ngari “led the repositioning of Wealth and Retail Banking from a traditional savings-focused segment to a leading wealth-focused segment with world-class products.” It said shareholders had benefited from strong, resilient financial performance during his tenure.
Incoming CEO Birju Sanghrajka inherits a bank with a clean balance sheet, with total assets of KSh 363.49 billion, a loan loss provision that fell 16.3% to KSh 1.99 billion, and a wealth management engine firing at its fastest pace in years. The task ahead is to sustain AUM growth momentum, rebuild NII in a gradually recovering rate environment, and close the gap left by the vanishing forex windfall without sacrificing the yield story that has kept SCBK’s investors patient through a difficult year.
