National Bank of Kenya (NBK) reported a 275% increase in profit after tax to KES 1.03 billion for the first quarter ended March 31, 2026, up from KES 275.7 million a year earlier, driven by higher net interest income and a steep decline in loan loss provisions, according to a press release dated May 21, 2026.

The lender said net interest income rose to KES 2.84 billion from KES 2.4 billion in Q1 2025, attributing the increase to “disciplined asset pricing and improved funding efficiency.” Non-interest income was KES 664.3 million, which NBK said reflected performance in fees and commissions despite a competitive environment.

NBK maintained operating expenses at KES 2.1 billion in the quarter, citing cost management and operational efficiency initiatives. The most significant swing factor was credit impairment: the bank said loan loss provisions declined 92% to KES 50 million from KES 618 million in the prior-year period, which it attributed to reduced non-performing loans, improved recoveries and enhanced credit quality.

On the balance sheet, NBK said total assets increased to KES 145.3 billion, up from KES 141.1 billion in December 2025. Customer deposits stood at KES 106.7 billion, which the bank said provided a stable funding base. Net loans and advances rose to KES 57.0 billion from KES 51.0 billion in December 2025.

The results come as Kenya’s banking sector continues to contend with credit risk management, competition for low-cost deposits and a shifting interest rate environment. For NBK, the sharp decline in provisions suggests an improving risk profile, while growth in loans and advances indicates an expansion of credit to households and businesses.

NBK Managing Director George Odhiambo said the bank’s start to the year was supported by operational measures and customer activity. “We have started off the year on a strong footing, driven by customer confidence, cost management and operations efficiency initiatives,” Odhiambo said. “We are reinventing ourselves in the market to come out stronger, and I am confident that by the end of the year, we will be at a higher level.”

Odhiambo added that the lender would continue to widen its offering. “Our focus is to continue serving our customers, exploring more business opportunities and expanding our product and service offering to better serve the market,” he said.

Industry watchers typically view a combination of rising net interest income and falling impairment charges as a signal of improved asset quality and pricing discipline, but the sustainability of earnings gains often depends on how long credit costs remain low and whether loan growth is funded without increasing funding costs. NBK’s deposits level and stable operating expenses may provide support if competition for deposits intensifies across the sector.

Looking ahead, NBK said it would focus on “delivering sustainable growth” while strengthening digital capabilities and maintaining disciplined risk management. The bank also referenced ongoing “integration processes within Access Bank PLC,” reflecting its position as a subsidiary of Access Bank Plc.