Bank of Baroda (Kenya) Limited has reported a profit after tax of Sh4.39 billion for the nine months ended 30 September 2026. This represents an 8.3% increase over Sh4.05 billion recorded during the corresponding period in 2025. The bank's profit before tax and exceptional items rose by 20.4% year-on-year to Sh6.97 billion. This reflects improved underlying operating performance and the bank's continued business momentum.
The bank's growth in core banking income, lending, and trade finance business has been supported by a strong capital base and liquidity position. This underscores the bank's financial strength and its continued focus on serving customers across the country. According to Mr. Astitva Bhardwaj, Managing Director, Bank of Baroda (Kenya) Limited, the bank remains committed to supporting customers' personal and business aspirations through responsive banking solutions.
The bank recorded a 23.5% increase in total operating income, supported by a 24.9% rise in net interest income. The third quarter delivered the strongest quarterly net interest income at Sh3.34 billion. Interest expense declined by 29.1%, reflecting lower costs on customer deposits amid the easing interest rate environment. Interest income moderated by 5.7%, in line with lower market rates.
The bank continued to support customers through prudent credit growth while recording strong expansion in trade finance and other non-funded business. Gross lending to customers grew by 5.1% year-on-year, demonstrating robust lending across customer segments. Non-funded business recorded particularly strong growth, increasing by 59.6%, reflecting growing trade finance volumes.
Asset quality indicators also improved during the quarter. The gross non-performing loan ratio declined to 12.26% from 12.91% as at June 2026. Net non-performing loans fell by 13.9% year-on-year and 17.0% quarter-on-quarter, closing at Sh3.75 billion. The provision coverage ratio strengthened to 60.05%, compared to 50.90% a year earlier.
Bank of Baroda (Kenya) continued to maintain capital and liquidity levels comfortably above the statutory minimum requirements set by the Central Bank of Kenya. Core capital increased by 6.4% to Sh35.35 billion, while total capital rose by 6.3% to Sh35.43 billion. The bank's liquidity ratio closed the period at 80.41%, four times the statutory minimum of 20%.
The bank's net worth increased by 5.5% year-on-year to Sh39.28 billion as of September 30, 2026. This growth was achieved despite the distribution of Sh4.45 billion to shareholders during the period as dividends declared for 2025. The bank remains focused on sustainable business growth, prudent risk management, and customer-focused banking.
Key points
- Bank of Baroda Kenya's profit after tax rises to Sh4.39 billion.
- The bank's strong capital base and liquidity position support its financial strength.
- Asset quality indicators improve, with a decline in non-performing loans.
