National Bank of Kenya (NBK) has recorded a profit after tax of KES275 million for the first quarter ended March 31, 2025, attributed to continued diversification of revenue streams and a dip in costs.

Operating income declined to KES3.1 billion due to a 27 percent year-on-year decrease in non-funded income. Net interest income remained stable at KES2.4 billion while interest expenses went down by 9 percent to KES1.3 billion, reflecting the impact of lower interest rates on borrowings.

NBK Managing Director George Odhiambo stated, “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.”

At the same time, the bank's operating expenses saw a 5 percent decrease from KES 2.3 billion in Q1 2024 to KES 2.1 billion, driven by effective cost containment measures implemented during the period.

Notably, the loan loss provisions also increased by 13 percent, pointing to a more cautious credit risk outlook even as customer deposits stood at KES103 billion while net loans and advances to customers closed at KES70.7 billion.

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