National Bank of Kenya (NBK) reported a 61% increase in H1 2026 profit, with profit after tax rising to KSh1.72 billion from KSh1.07 billion a year earlier as stronger interest income, loan growth and a sharp reduction in credit impairment charges improved the bank’s earnings.
The result covers the six months ended June 30, 2026, and comes as NBK continues its transformation under parent company Access Bank PLC. The bank also expanded its balance sheet during the period, with total assets, customer deposits and net loans all recording growth compared with December 2025.
The headline profit increase, however, needs some context. While NBK’s core interest income improved, one of the biggest contributors to the year-on-year improvement was the steep fall in loan loss provisions, which dropped from about KSh1 billion in H1 2025 to KSh80.9 million in the latest period.
NBK profit growth gets a major boost from lower provisions
NBK’s net interest income rose 11% to KSh5.40 billion from KSh4.87 billion in H1 2025. The bank attributed the improvement to disciplined asset pricing and better funding efficiency, giving the institution a stronger contribution from its core lending and funding activities.
Non-interest income remained resilient at KSh1.47 billion, with fees and commissions holding up despite competition in the banking market. Operating expenses stood at KSh4.61 billion, as the bank continued with cost management and operational efficiency measures.
The much larger movement came from credit provisions. Loan loss provisions fell by roughly 92%, from KSh1 billion to KSh80.9 million, which substantially reduced the amount of income set aside for potential credit losses.
NBK said the decline was supported by improved recoveries and enhanced credit quality. The distinction matters because the bank’s 61% profit growth was not solely the result of a large increase in operating revenue; the significant reduction in impairment charges also played a major role in lifting the bottom line.
John Ojalla, acting managing director of NBK, said the first-half results reflected the resilience of the business, growing customer confidence and the impact of strategic initiatives implemented across the bank.
Loans and deposits expand as balance sheet grows
The bank’s balance sheet also recorded notable growth during the first half of the year. Total assets rose to KSh157 billion at the end of June, up from KSh141 billion in December 2025, representing an increase of about KSh16 billion in six months.
Customer deposits increased from KSh106.1 billion at the end of 2025 to KSh116.3 billion. The roughly 9.6% increase gives NBK a larger funding base from which to support lending and other banking activities.
Net loans and advances grew at a faster pace, rising from KSh51 billion to KSh61 billion. That represents growth of almost 20% in six months, as the bank expanded financing to customers and businesses across different sectors.
The movement also puts NBK’s June loan-to-deposit ratio at roughly 52.5%, compared with about 48.1% at the end of December 2025. The figures point to a bank deploying more of its deposit base into lending, although maintaining credit quality will remain important as the loan book expands.
For NBK, the combination of deposit growth and higher lending provides room for future interest income, while the sharp improvement in provisions gives the bank a healthier starting point for the second half of the year.
Access Bank integration remains central to NBK strategy
The financial results come against the backdrop of NBK’s continued integration with Access Bank, which acquired the Kenyan lender and has been incorporating it into the wider group’s operations.
NBK says its transformation programme is focused on operational efficiency, asset quality, customer relationships and the use of opportunities arising from its relationship with Access Bank. Digital capabilities and customer experience are also prominent parts of the strategy.
The bank’s first-half numbers provide some evidence of progress on several of those fronts. Its balance sheet is larger, lending has expanded and the cost associated with credit losses has fallen sharply, while income from core banking activities has continued to grow.
That does not mean all of the improvement can be attributed directly to the Access Bank integration. The results reflect several factors, including recoveries, credit quality, pricing and funding efficiency, alongside the bank’s broader transformation programme.
NBK sets sights on digital capabilities and efficiency
Looking ahead, NBK says it intends to build on the first-half performance by strengthening its digital capabilities, improving customer experience and maintaining disciplined risk management.
The bank also plans to continue pursuing operational efficiencies as integration with Access Bank progresses. Its stated focus is on supporting businesses and households while strengthening its position in Kenya’s competitive banking market.
The H1 results give NBK a stronger platform for the remainder of 2026. Profit has risen substantially, deposits have crossed KSh116 billion and net loans have reached KSh61 billion, while the dramatic reduction in loan loss provisions has eased one of the major pressures on earnings.
The next test will be whether NBK can sustain that improvement through the rest of the year while maintaining asset quality as lending grows. For now, the first six months of 2026 show a bank with stronger earnings and a more active balance sheet, as its transformation under Access Bank continues.
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