National Bank of Kenya (NBK)’s net profit for the year ended December 2025 more than doubled to Sh2.3 billion from Sh1 billion posted a year earlier, despite its core business shrinking.
NBK, which was acquired last year by Nigeria’s Access Bank Plc from KCB Group, cut its loan loss provisions by 37 percent to Sh2.91 billion, after slashing its bad debts by nearly half. Its non-performing loans dropped to Sh15.6 billion from Sh30.7 billion which management attributed to cherry picking during acquisition and enhanced recoveries.
The bank’s loan book shrunk 32.2 percent to Sh50.7 billion from Sh74.8 billion attributed to change in lending strategy.
“The bank’s performance reflects disciplined execution of our turnaround priorities and a sustained focus on strengthening the balance sheet, improving asset quality and enhancing operational efficiency,” said George Odhiambo, NBK’s Managing Director.
“Net loans and advances stood at Sh51 billion, down from Sh75 billion, largely due to acquisition-related asset transfers and the bank’s deliberate shift towards a more risk‑adjusted lending strategy.”
The bank did not declare a dividend with the retained earnings improving its core capital position, while lowering its accumulated losses to Sh2.4 billion from Sh5.8 billion.
Its core capital rose by Sh3.3 billion giving it room to grow its deposit base which expanded 7.7 percent to Sh106.1 billion. The deposits were invested in government securities which rose by 23.1 percent to Sh60 billion, while lowering its borrowing from other institutions. Reliance on its own cash saw the bank lower interest paid to other banking institutions to Sh919 million from Sh2.25 billion.
Shrinking of the bank’s loan book improved NBK’s capital adequacy ratios which had fallen below regulatory minimums as at end of 2024.
The bank’s core capital to total risk weighted assets rose to 13.7 percent up from nine percent a year earlier which was 1.5 percent lower than the statutory requirement. NBK cut its operating expenses by 13.6 percent to Sh10 billion as it kept its staff costs flat, while reducing other expenses which it attributed to operational efficiencies.
“The bank will focus on building a high-quality and diversified loan portfolio, strengthening credit underwriting and recovery frameworks, sustaining deposit growth and customer acquisition, accelerating digital innovation and service delivery, driving operational efficiency and leveraging integration synergies with Access Bank Plc,” said Mr Odhiambo.
Access Bank acquired NBK from KCB last year in a transaction estimated at Sh13.2 billion, based on the disclosed transactional multiple of 1.25 times the book value at the end of December 2023.
KCB booked a Sh3.1 billion gain from the sale of the bank to Access Bank and used proceeds of the transaction to pay a special dividend of Sh2 per share in mid-2025.
NBK said selected assets and liabilities were transferred under the Share Purchase Agreement, enabling the Bank to adopt a leaner balance sheet and a stronger profile.
