National Bank of Kenya (NBK) has recorded a profit after tax of KShs 275 million for the first quarter ended March 31, 2025, amid a challenging operating environment.
The performance is attributed to the bank’s continued diversification of its revenue streams and a decrease in operating expenses as a result of the implementation of cost containment measures.
Commentary: NBK Managing Director George Odhiambo “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. We remain focused on executing our strategic priorities, deepening customer relationships, revenue diversification, and driving sustainable growth across our business operations.”
Key Financial highlights.
In the first quarter of 2025, operating income declined to KShs 3.1 billion, primarily due to a 27% year-on-year decrease in non-funded income. Despite this, net interest income remained stable at KShs 2.4 billion while interest expenses fell by 9% to KShs 1.3 billion, reflecting the impact of lower market interest rates and reduced borrowings.
Operating expenses reduced by 5% to KShs 2.1 billion from KShs 2.3 billion in Q1 2024, driven by effective cost containment measures implemented during the period.
The loan loss provisions increased by 13%, reflecting a more cautious credit risk outlook. Customer deposits stood at KShs 103 billion while net loans and advances to customers closed at KShs. 70.7 billion.
Outlook
With a key focus on customer satisfaction, the Bank continues to focus on product diversification and sustainable practices, seeking to enhance operational efficiency, improve service delivery, and increase its market share across key segments. This will go a long way in supporting the bank to navigate the evolving operating landscape while supporting the financial needs of individuals, SMEs, and corporate clients across board.