By Eddah Waithaka
National Bank of Kenya (NBK) delivered a stellar performance in the first half of 2026, recording a 61% surge in profit after tax as the lender reaps rewards from its transformation strategy under parent company Access Bank PLC.
The bank’s Profit After Tax (PAT) jumped to KShs 1.72 billion for the six months ended 30 June 2026, a significant leap from KShs 1.07 billion recorded in the same period last year . The impressive growth reflects stronger net interest income, a drastic reduction in credit impairment charges, and disciplined cost management.
“We have started 2026 on a strong footing,” said John Ojalla, Acting Managing Director of NBK. “Our first-half performance reflects the resilience of the business, growing customer confidence, and the positive impact of the strategic initiatives we have implemented across the bank” .
Financial Performance
NBK’s Net Interest Income grew 11% to KShs 5.40 billion, supported by disciplined asset pricing and improved funding efficiency . While total interest income dipped slightly by 2.7% to KShs 7.20 billion, a 29% reduction in interest expense to KShs 1.80 billion drove the core income growth .
Non-Interest Income held resilient at KShs 1.47 billion, while operating expenses remained contained at KShs 4.61 billion as the bank continued implementing cost management initiatives .
The most dramatic improvement came from Loan Loss Provisions, which plummeted to KShs 80.9 million from approximately KShs 1 billion in the prior year, a 92% decline driven by improved recoveries and enhanced credit quality .
Balance Sheet Expansion
NBK continued strengthening its balance sheet, backed by sustained customer confidence. Total Assets expanded to KShs 157 billion from KShs 141 billion in December 2025 . Customer Deposits rose 16.1% to KShs 116.3 billion, providing a stable funding base for growth, while Net Loans and Advances grew 38.4% to KShs 61 billion, reflecting the bank’s increased support for customers and businesses .
“Our H1 performance demonstrates the progress we are making in strengthening the Bank and positioning it for sustainable growth,” added Ojalla. “We remain committed to enhancing customer experience, strengthening our digital capabilities, maintaining disciplined risk management, and improving operational efficiency” .
