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. The results, the first full-year results since Access Bank completed its acquisition of NBK on 30 May 2025, reflected a 7.5% drop in operating expenses and a 37% cut in loan-loss provisions.
STRONG FINANCIAL TURNAROUND
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% decline.
"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 contracted 32.3% to KSh 50.71 billion, down from KSh 75 billion, after certain loan assets were transferred to KCB Bank Kenya under the share purchase agreement and the bank adopted a risk-adjusted lending strategy. Customer deposits, a key liquidity pillar, rose 7.8% to KSh 106.17 billion from KSh 98 billion. 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, lifting the core capital ratio to 13.7% from 9.0% and bringing capital ratios into compliance with CBK requirements.
ACCESS BANK'S STRATEGIC OVERHAUL
Access Bank completed its KSh 13.2 billion acquisition of NBK from KCB Group in May 2025, priced at 1.25 times NBK's December 2023 book value. Under the share purchase agreement, select assets and liabilities transferred out, enabling a leaner balance sheet.
Access Bank entered Kenya earlier through its 2020 acquisition of Transnational Bank. Other Nigerian lenders have also entered Kenya through acquisitions: Guaranty Trust Bank agreed to buy a 70% stake in Fina Bank in 2013, and Zenith Bank is acquiring Paramount Bank.
Kenya's Business Laws (Amendment) Act 2024 raises banks' minimum core capital to KSh 5 billion by year-end 2026 and KSh 10 billion by 2029, spurring consolidations.
NEW INITIATIVES AND OUTLOOK
"We are now focused on accelerating growth and unlocking the full potential of the bank in the years ahead," Odhiambo added.
Looking to 2026, NBK prioritizes a high-quality loan portfolio, robust underwriting, deposit expansion, digital acceleration, and Access synergies. NBK also launched the W Initiative in 2025, which offers women entrepreneurs and professionals tailored financial products, business advisory services and access to professional networks.