The Week In Markets Reports
I&M Group FY 2025 Results
The banking sector was busy with activity as banks who had not released their FY2025 report cards rushed to share their performances. Speaking during their Investor Briefing earlier in the week, the Regional CEO of I&M Group, Kihara Maina, announced a 28% growth in profits attributable to shareholders to come in at Ksh 18.8 Bn, positioning the bank among the fastest-growing banks in FY2025.
NCBA Group FY 2025 Results
NCBA Group PLC then announced a profit after tax of Ksh 23.4 Bn in its full year 2025 financial results which is a 7.0% increase compared to the Ksh 21.9 Bn reported during a similar period in 2024. The performance translates into an enhanced dividend payout of Ksh 11.7 Bn up from Ksh 9.1 Bn in 2024 underscoring the Group`s commitment to deliver attractive returns for its shareholders.
Building on the strong foundation established over the past six years, NCBA Group then introduced its 2026–2030 “Ubuntu” strategy, anchored on the purpose “Banking on Belief – Empowering Ambitions”. The strategy reflects a pivot toward data-led growth, expansion into new segments and markets, and a stronger focus on diversified revenue streams as competition intensifies across the banking sector.
Tier 1 Banks Lead Through Diversification
The Tier 1 Banks are doing really well by diversifying their businesses beyond traditional lending. Absa Bank Kenya has maintained its position as the most profitable in the bancassurance space, closely followed by Co-op Bank
Listed Banks’ Profitability and Dividends
The story of Kenyan listed Banks is very interesting to follow. And one can argue that the sector is indeed the most vibrant sector on the Nairobi bourse. In FY2025 alone, the Tier 1 Banks booked a total of Ksh 269 Bn in profits attributable to shareholders. Equity Group carries the day, becoming the most profitable banking business in the country.
The Tier 1 listed banks have sprayed a whopping Ksh 111 Bn to shareholders as part of Dividends following their resilient performances in FY2025. KCB Group stands out, having declared not only the highest dividend amount but also significantly increased the Dividend year on year, on the back of the special dividends paid after the successful sale of NBK to Access Group Plc
Does it not surprise you, dear reader, that KCB Group now has the highest dividend yield in the banking sector? Indeed investing is a game of understanding the context scenarios.
HF Group FY 2025 Results
HF Group, which recently upgraded its banking business to Tier II status and officially made its first Ksh 1 Billion in pretax profits in years, will be releasing its FY’2025 results on Tuesday next week. Stay tuned for updates.
National Bank FY 2025 Results
National Bank of Kenya, a wholly owned subsidiary of Access Bank PLC, reported a strong turnaround in 2025, with profit more than doubling to Ksh 2.39 Bn, driven by lower costs, better loan quality, and improved efficiency following its acquisition by Access Bank Plc.
The bank is now financially stronger and expects continued growth in 2026 as it focuses on smarter lending, growing deposits, and expanding digital services.
Equity’s Accolades
Equity Bank has been ranked Africa’s strongest banking brand and Kenya’s most valuable brand, with a valuation of USD 554 million, according to Brand Finance.
The ranking reflects the lender’s growing customer trust, digital scale, and regional expansion, allowing it to edge past Safaricom and stay ahead of rivals like KCB Group.
Leadership Update
KCB Group has appointed Peter Kipkorir Ng’eno as Director of Corporate Banking at KCB Bank Kenya, where he will oversee the growth of the corporate banking business.
The appointment signals continuity in KCB’s internal leadership pipeline, as banks increasingly rely on experienced in-house executives to strengthen corporate lending, deepen sector coverage, and drive revenue growth through established client networks.
Corporate Updates
This week, Kenya’s top professional golfer, Njoroge Kibugu, received Ksh. 2 Mn cash reward from Absa Bank Kenya following his remarkable performance at the 2026 Magical Kenya Open presented by Absa in February.
Kibugu was the sole Kenyan to make the cut to the final round by delivering a highly competitive performance against a field of highly competitive golfers from over 30 countries.
Kenya Airways FY 2025 Results
Kenya Airways reported a net loss of Ksh 17.2 Bn for the year ended 2025, as revenue fell 14% to Ksh 161 Bn following reduced capacity caused by grounded aircraft and global supply chain disruptions.
The airline says it is pursuing fleet restoration, cost discipline, and capital raising to stabilise operations and support long-term growth after a challenging 2025.
Treasury Bills Undersubscribed
Kenya’s Treasury bill auction this week was undersubscribed, with investors bidding Ksh 10.9 Bn against an offer of Ksh 24 Bn, reflecting a subscription rate of only 45.5%.
The mixed demand signals shifting liquidity preferences in the money market, with short-term yields edging up while longer-dated paper eased slightly as investors reassess risk and return expectations.
Airtel Africa X SpaceX Satellite-to-Mobile Connectivity
In the Telco space, Airtel Africa and SpaceX have successfully tested satellite-to-mobile connectivity in Kenya using Starlink, enabling messaging and light data services in areas with no network coverage.
This could reshape telecom economics by reducing reliance on costly rural infrastructure, while also introducing new competition dynamics between satellite providers and traditional mobile network operators.
From Abojani
We partnered with Branch for an exclusive SME Networking Event which focused mainly on Winning in Business with Strategy Formulation & Execution. Key speakers at the event included Rose Muturi, the MD at Branch as well as Abraham Mbuthia who shared his story on how he built Uzapoint from scratch
But the highlight of the week for us was the Webinar on The Psychology of Investing in the Stock Markets, which we hosted in partnership with Safaricom and the Nairobi Securities Exchange.
Catch the recording here: https://us02web.zoom.us/rec/share/35i7obhxguzbysvq8mftMJWn0emKfXB7sbj6sGMSSFa7p33UM2QgzgvCyXiVX70W.4cQIg3DP_ukTrUwf
Passcode: Stocks@101
Banking Sector FY 2025 Analysis
Coming up next week, we plan to wrap up the FY2025 Earnings season in style. We will host an X-Space where we will discuss our observations and insights on how the banks performed in 2025 and the opportunities that exist for investors.
Set your reminder here: https://x.com/i/spaces/1yxBeMmOqgEJN?s=20
