National Bank of Kenya (NBK) has posted a profit after tax of KSh 2.39 billion for the year ended December 31, 2025, more than doubling the KSh 1.06 billion recorded a year earlier and marking its strongest performance since recapitalisation during the KCB Group era.
These are the first results released since Access Bank Plc completed its KSh 13.2 billion acquisition of NBK in May 2025.
The improved performance was largely driven by tighter cost control rather than aggressive revenue growth. Operating income edged up 2.2% to KSh 12.93 billion, while operating expenses dropped 13.7% to KSh 10.02 billion, significantly improving the cost-to-income ratio to 77.5% from 91.7%.
Net interest income rose 5.8% to KSh 10.38 billion, supported by a sharp decline in interest expenses as funding pressures eased. Loan loss provisions also fell 37% to KSh 1.52 billion, with gross non-performing loans halving to KSh 15.66 billion, their lowest level since 2022.
However, the balance sheet reflects a strategic shift. Net loans shrank by 32.3% to KSh 50.71 billion, signalling a deliberate reduction in lending under the new ownership. The freed-up capital has largely been redirected into government securities, which climbed to KSh 59.93 billion, alongside higher balances held with the Central Bank of Kenya.
Liquidity surged to 65.3%, far above the statutory minimum, suggesting the bank is yet to fully channel deposits back into lending. Customer deposits rose 7.8% to KSh 106.17 billion, while earnings per share more than doubled to KSh 0.88.
Shareholders’ funds strengthened to a record KSh 17.02 billion, with the core capital ratio improving to 13.7% from 9.0%.
From decline to recovery
The rebound follows years of turbulence. Once a consistently profitable state-linked lender listed on the Nairobi Securities Exchange, NBK saw its fortunes deteriorate from 2015 as bad loans surged and governance issues took hold.
Also Read: Zamara Stake Sale Faces EAC Scrutiny as Amethis Targets Minority Entry
A spike in loan loss provisions pushed the bank into losses, while non-performing loans ballooned significantly, eroding capital buffers. By 2018, the bank had fallen below regulatory capital thresholds, prompting a takeover by KCB Group in 2019 under the supervision of the Central Bank of Kenya. NBK was subsequently delisted from the exchange.
Although recapitalisation followed, performance remained uneven, culminating in a record loss in 2023 that ultimately led to its sale.
Strategic exit and integration
For KCB Group, the disposal delivered a KSh 3.1 billion gain, enabling a higher shareholder payout.
For Access Bank Plc, the acquisition offers immediate scale in Kenya. By September 2025, NBK and Access Bank’s local operations had begun integrating services across more than 100 branches, with full operational alignment still underway.
