Kenya's largest lenders reported higher 2025 profits, led by Equity Group Holdings and KCB Group. Equity Group's profit after tax rose 55 percent to Sh75.5 billion, while KCB achieved a profit after tax of Sh68.4 billion, up 11 percent. Equity's net interest income rose 17 percent, and both lenders improved their cost-to-income ratios, Equity to 51.0 percent from 58.2 percent and KCB to 42.5 percent from 45.4 percent.
RECORD PROFITS DOMINATE 2025
The year 2025 marked a strong performance for Kenya's banking heavyweights. Equity Group Holdings led, reporting a 55 percent jump in profit after tax to Sh75.5 billion from Sh48.8 billion in 2024. Total income rose 12 percent to Sh217.7 billion, with net interest income up 17 percent to Sh126.9 billion.
KCB Group saw profit after tax increase 11 percent to Sh68.4 billion. KCB's customer loans rose 15 percent to Sh1.59 trillion, while operating expenses fell 2.5 percent.
Co-operative Bank of Kenya posted a profit after tax of Sh29.75 billion. Absa Bank Kenya grew profit after tax by 10 percent to Sh22.9 billion, as loan impairment charges fell 32 percent. Diamond Trust Bank (DTB) Kenya reported a 21.4 percent profit surge to Sh10.7 billion, as customer deposits crossed half a trillion shillings for the first time at Sh509.1 billion. "We have delivered quality growth while maintaining strong discipline and enhancing operational efficiency," said Group CEO Nasim Devji.
Not all performers were uniform. Standard Chartered Bank Kenya saw profits plunge 38 percent to Sh12.4 billion due to weaker income, higher expenses, and a Sh2.6 billion one-off pension cost. Stanbic held flat at Sh13.72 billion. Smaller players like National Bank of Kenya, now owned by Access Bank, delivered a 125 percent profit leap to Sh2.39 billion, helped by lower interest expenses, cost savings from the Access Bank integration and a 37 percent fall in credit loss allowances. Kingdom Bank reported a 59 percent profit after tax increase to Sh946.2 million.
REGIONAL EXPANSION FUELS GROWTH
Subsidiaries outside Kenya generated 51 percent of Equity's banking profit before tax. The board proposed a Sh21.7 billion dividend, or Sh5.75 per share. KCB proposed a dividend of Sh7 per share, with a total payout of Sh22 billion.
DTB closed 2025 with total assets of Sh659.1 billion, up 15 percent, net loans of Sh324.2 billion and customer deposits of Sh509.1 billion.
KCB, which operates across East and Central Africa, closed 2025 with total assets of Sh2.15 trillion, up 9.3 percent.
GLOBAL BRAND RECOGNITION SOARS
Brand Finance named Equity Bank Africa's strongest banking brand, with a Brand Strength Index score of 93.9 out of 100 and an AAA+ rating, placing it among the top 10 strongest banking brands globally. Brand Finance also ranked Equity as Kenya's most valuable brand.
CHALLENGES AND OUTLOOK AHEAD
While 2025 was stellar, headwinds persist. DTB's non-performing loan ratio improved to 10.8 percent from 12.3 percent. Standard Chartered Kenya's operating expenses rose 13.3 percent, largely because of the pension settlement.
DTB raised its dividend to Sh9 per share from Sh7.