National Bank of Kenya (NBK) has reported a net profit of KShs 275 million for the first quarter ended March 31, 2025.
The decline in profitability was due to a decline in the operating income 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.
During the period, operating expenses reduced by 5% to KShs 2.1 billion from KShs 2.3 billion in Q1 2024. This was 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.
NBK Managing Director George Odhiambo, had this to say, “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.”