National Bank of Kenya (NBK), now a wholly owned subsidiary of Nigeria's Access Bank Plc, more than doubled its profit after tax to KSh 2.39 billion for the year ended December 31, 2025, up 125% from KSh 1.06 billion in 2024. This stellar turnaround, the first full-year results since Access Bank's May 30, 2025 acquisition, underscores the transformative impact of disciplined cost management, a 13.7% plunge in operating expenses, and a 37% cut in bad loan provisions amid a strategic overhaul of its lending portfolio.
STRONG FINANCIAL TURNAROUND
The results reflect NBK's aggressive execution of its revival plan under new ownership. Net interest income climbed to KSh 10.3 billion, bolstered by a 33% reduction in interest expenses, while operating costs dropped to KSh 8.49 billion from KSh 9.18 billion the prior year. Asset quality sharpened markedly, with allowances for expected credit losses falling to KSh 1.5 billion from KSh 2.4 billion—a 37% improvement that signals tighter risk controls and proactive portfolio cleanup.
"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. "We are confident that this momentum will continue as we scale the business."
Net loans and advances contracted 32.3% to KSh 50.71 billion, down from KSh 75 billion, due to acquisition-related asset transfers and a deliberate shift to risk-adjusted lending. This rationalization, while shrinking the loan book, fortified stability. Customer deposits, a key liquidity pillar, rose 7.8% to KSh 106.17 billion from KSh 98 billion, reflecting renewed confidence. Total assets dipped to KSh 141.3 billion from KSh 148.3 billion, but equity swelled to KSh 17 billion from KSh 13.4 billion, pushing capital ratios into full regulatory compliance.
ACCESS BANK'S STRATEGIC OVERHAUL
The May 2025 acquisition marked a pivotal milestone, converting NBK into Access Bank's Kenyan arm and injecting pan-African expertise. Under the share purchase agreement, select assets and liabilities transferred out, enabling a leaner balance sheet. NBK adopted Access's superior risk management, credit underwriting, and operational frameworks, directly fueling efficiency gains and customer trust.
This move aligns with Access Bank's broader East African push, including prior buys like Transnational Bank in 2020. As Nigerian giants like Guaranty Trust Bank (GTB), United Bank for Africa (UBA), and Zenith Bank swarm the region via acquisitions—GTB snapping Fina Bank in 2013 and upping stakes, Zenith acquiring Paramount Bank in early 2026—Kenya emerges as the prime launchpad. The Kenyan Bankers Association highlights Nairobi's open policies, uniform licensing, and digital prowess via mobile payments as magnets for foreign entrants.
Central Bank of Kenya guidelines ramp up core capital to KSh 5 billion by year-end 2026 and KSh 10 billion by 2029, spurring consolidations. "Foreign banks have the necessary risk tolerance and expertise to syndicate and underwrite such transactions on a competitive scale," notes industry observer Mr. Owuor, amid AfCFTA-driven trade finance booms linking Africa to India, Dubai, and China.
NEW INITIATIVES AND OUTLOOK
"This year’s performance demonstrates the Bank’s strengthened foundation and its readiness to create long-term value. We remain committed to enhancing customer experiences, delivering innovative solutions and supporting sustainable economic development," Odhiambo added.
Looking to 2026, NBK prioritizes a high-quality loan portfolio, robust underwriting, deposit expansion, digital acceleration, and Access synergies. With rivals like Absa scouting allocations, competition intensifies. Yet NBK's fortified position—backed by Access's retail and trade finance muscle—poises it to capture growth in Kenya's progressive market, where participatory policies and unbanked millions via mobile tech promise scale.
The bank's resurgence exemplifies how West African banking prowess is reshaping East Africa's financial landscape, blending local insight with global heft to fuel economic momentum.