StanChart interim dividend up despite 17pc profit drop

Standard Chartered Bank Kenya has increased its interim dividend payout despite posting a 16.8 percent drop in net profit for the half year ended June 2026.

The lender posted Sh6.7 billion for the first six months of the year compared to Sh8 billion posted in the previous review period.

StanChart’s management, however, declared an interim dividend of Sh8.50 per share, up from Sh8 paid last year, but did not disclose the timeline of the payout.

The profit drop follows a 34.8 percent decline in interest earned from government securities, with the lender having reduced its investment in Treasury bills and bonds to Sh96.9 billion from Sh103 billion a year earlier.

StandChart increased its lending to the productive private sector, with its loan book growing 11.1 percent to Sh169.2 billion, faster than the 6.4 percent expansion of its deposit base to Sh309.1 billion.

This comes at a time when private sector lending in the country rose to 10.4 percent in June following an aggressive push by the Central Bank to lower interest rates and spur borrowing.

“Total interest income declined 17.5 percent, driven by lower income from government securities and loans and advances amid declining interest rates,” said Sterling Capital in a note to investors.

“Net interest income fell 19.8 percent to Sh12.3bn, as the decline in interest income was not offset by a meaningful reduction in interest expense,” added the note.

StanChart's total operating expenses declined during the period, driven by lower loan loss provisions as its gross non-performing loans improved 6.5 percent to Sh9 billion.

StanChart is the second large international lender, after Absa, to increase its interim dividend despite a profit drop.

StanChart has disclosed intentions to sell some of its property holdings as it scales back physical presence in the country in favour of digital banking.

Some of the properties on sale include its headquarters, the Chiromo Building located in Westlands, which was valued by the lender at Sh1.411 billion.

The bank announced it sold its iconic Treasury Square building in Mombasa and the Nyeri branch last year.

→gngigi@ke.nationmedia.com

Follow our WhatsApp channel for the latest business and markets updates