NBK Managing Director George Othiambo. Photo by Oxygene PR
National Bank of Kenya (NBK) has reported a profit after tax of KShs 275 million for the first quarter ended March 31, 2025, marking a resilient performance amid a challenging macroeconomic environment.
According to the lender, the improved earnings were driven primarily by reduced operating expenses and continued diversification of revenue streams. This comes even as the bank recorded a dip in overall operating income and a decline in its non-funded income.
Managing Director George Odhiambo credited the bank’s strategic execution for the positive performance
“The performance for this first quarter demonstrates the bank’s continued resilience in the face of economic uncertainties. We have maintained stability in our core interest income and managed our costs effectively, despite a dip in non-funded income and a reduction in the loan book size,” he said.
“We remain focused on executing our strategic priorities, deepening customer relationships, revenue diversification, and driving sustainable growth across our business operations.”
Key Financial Highlights:
Operating income declined to KShs 3.1 billion, primarily due to a 27 percent year-on-year drop in non-funded income.
Net interest income held steady at KShs 2.4 billion, while interest expenses fell by 9 percent to KShs 1.3 billion, reflecting the impact of lower market rates and reduced borrowings.
Operating expenses dropped by 5 percent to KShs 2.1 billion, down from KShs 2.3 billion in Q1 2024, driven by robust cost containment initiatives.
Loan loss provisions rose by 13 percent, signalling a more cautious credit risk approach.
Customer deposits stood at KShs 103 billion, while net loans and advances closed at KShs 70.7 billion.
Strategic Outlook:
NBK reiterated its commitment to enhancing customer satisfaction and sustainable banking practices. The bank aims to expand its market share through continued product innovation, improved service delivery, and operational efficiency, targeting individuals, SMEs, and corporate clients.
As the financial sector navigates an evolving landscape, NBK’s first-quarter performance positions it to maintain momentum in delivering value to its stakeholders while adapting to shifting market dynamics.