NBK’s Q1 2026 profit triples to Ksh1.03bn on strong growth momentum

The National Bank of Kenya (NBK) has delivered a strong start to the 2026 financial year, posting an impressive 275% surge in profit after tax for the first quarter ended March 31, 2026.

According to the bank’s latest financial results, profit after tax rose sharply to Ksh. 1.03 billion, compared to Ksh. 275.7 million recorded during the same period in 2025 — a performance driven largely by stronger net interest income, improved operational efficiency, and a significant decline in loan impairment charges.

NBK’s net interest income climbed to Ksh. 2.84 billion, reflecting improved asset pricing and stronger funding efficiency, while non-interest income remained resilient at Ksh. 664.3 million, supported by consistent transaction volumes and stable fee-based revenue streams.

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One of the most notable highlights of the quarter was the bank’s significant improvement in asset quality. Loan loss provisions dropped by 92% year-on-year to Ksh. 50 million from Ksh. 618 million in Q1 2025, signaling stronger credit management, aggressive recovery efforts, and a substantial reduction in non-performing loans.

Despite the evolving and competitive banking environment, NBK maintained disciplined cost management, keeping operating expenses flat at Ksh. 2.1 billion.

The lender also recorded growth across key balance sheet indicators:
• Total assets expanded to Ksh. 145.3 billion
• Net loans and advances increased to Ksh. 57 billion
• Customer deposits continued to grow steadily to Ksh. 106.7 billion

Speaking on the bank’s performance, NBK Managing Director George Odhiambo noted that the institution is undergoing a strategic transformation aimed at strengthening its market position and delivering long-term value.

“We have started off the year on a strong footing, driven by customer confidence, cost management, and operational efficiency initiatives,” Odhiambo stated. “We are reinventing ourselves in the market to come out stronger.”

NBK’s performance reflects a broader trend across East Africa’s banking sector, where financial institutions are increasingly prioritising operational efficiency, stronger risk management frameworks, digital transformation, and sustainable lending strategies to drive profitability and resilience.

As the region’s financial ecosystem continues to evolve, NBK’s turnaround reinforces growing investor confidence in East Africa’s banking industry and highlights the increasing importance of adaptive leadership, innovation, and customer-focused banking models in shaping the future of African finance.