StanChart profits surge as bank exits retail business

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Standard Chartered Bank (StanChart) posted a net profit of sh115.1b for the year ended December 2025, representing a 503% jump from the sh19.1b it recorded in the prior year.

What drove profits through the roof was a dramatic fall in costs. Total expenditure dropped 29% to sh184b from sh260.5b the previous year. Provisions for bad and doubtful debts fell sharply from sh28.9b to just sh4.6b, suggesting improved credit quality. Operating expenses also fell from sh148.7b to sh112.7b.

“We took deliberate actions to concentrate capital and resources in areas of greatest competitive advantage. We simplified our business, strengthened our balance sheet, and improved returns on risk-weighted assets,” Sanjay Rughani, chief executive at Standard Chartered, said.

Standard Chartered and Absa Bank signed the sale and transfer agreement on October 24 2025, with all retail clients and employees set to move to Absa once the deal clears regulatory approval.

“As part of this strategic sharpening, the sale of our Wealth and Retail Banking business to Absa Bank, subject to regulatory approval, is progressing well and remains on track. The retail business continues to operate strongly during the transition period,” he said.

“This transaction allows us to focus even more clearly on our Corporate & Investment Banking business, where we have distinctive capability, deep expertise and global connectivity. This is a deliberate repositioning towards areas where we can have the greatest impact and differentiation.”

David Wandera, managing director at Absa, said recently that the transaction is anticipated to be completed before the close of the year.

“We are more than halfway to getting full regulatory approval. We should be able to complete this transaction before the end of this year and the absorption of the customers,” he said.

The Bank’s total income fell, dropping 9% to sh304.9b from sh335.7b in 2024, as interest income on loans and advances declined from sh79.3b to sh57b. That slide reflects a loan book that has been shrinking as the retail and wealth business segments winds down ahead of the Absa handover.

Loans and advances (net) tumbled 41% to sh582.7b from sh996.1b in 2024, as the bank prepares to wind down consumer lending ahead of the conclusion of the transaction. Customer deposits tell the same story, falling 41% to sh1.309 trillion from sh2.208 trillion.