After takeover by Nigeria’s largest bank, Kenya's National Bank profit jumps 178%

The National Bank of Kenya (NBK) has reported a dramatic 178% surge in profit before tax for the year ended December 2025, marking a strong turnaround following its acquisition by Nigerian lender Access Bank Plc.

NBK’s profit before tax rose to Sh2.91 billion, up from Sh1.05 billion in 2024, while net profit climbed 125% to Sh2.39 billion.

But beyond the headline growth, the results reveal a deeper strategic shift in that NBK is deliberately shrinking its loan book to reduce risk, even as profitability rises.

Net loans and advances dropped sharply to Sh51 billion from Sh75 billion, a move the bank attributes to asset transfers following the acquisition and a pivot towards more risk-adjusted lending.

This suggests the bank is prioritising quality over aggressive expansion, a key signal of a restructuring lender stabilising after years of pressure.

The performance marks NBK’s first full financial year under Access Bank, which completed its acquisition in May 2025.

Since then, the bank has focused on cleaning up its balance sheet, cutting costs, and tightening credit standards.

Loan loss provisions dropped by 37% to Sh1.5 billion, signalling improved asset quality, while operating expenses declined to Sh8.49 billion from Sh9.18 billion a year earlier. 

Interest expenses also fell sharply by 33%, helping lift net interest income to Sh10.3 billion.

Managing Director George Odhiambo said the results reflect “disciplined execution” of the bank’s turnaround strategy and a stronger financial foundation.

Customer deposits grew to Sh106 billion, up from Sh98 billion, signalling renewed trust from customers after the acquisition.

At the same time, the bank’s capital position strengthened significantly, with total equity rising to Sh17 billion from Sh13.4 billion.

Total assets declined to Sh141.3 billion from Sh148.3 billion, reinforcing the narrative of a leaner, more efficient bank rather than a rapidly expanding one.

The restructuring included transferring selected assets and liabilities as part of the acquisition deal, allowing NBK to rebuild with a cleaner balance sheet.

The bank also upgraded its:

·        Risk management frameworks

·        Credit underwriting processes

·        Operational systems

These changes have directly contributed to improved asset quality and operational efficiency.

Strategic Bet on Women Entrepreneurs

Alongside its financial reset, NBK launched the “W Initiative” in 2025, targeting women entrepreneurs with financing, advisory services, and business support.

The program is positioned as part of the bank’s long-term growth strategy, tapping into Kenya’s expanding base of women-led enterprises.

With backing from Access Bank and a cleaner balance sheet, the lender is positioning itself for sustainable, controlled growth rather than rapid expansion.