Bank of Baroda Kenya sustains strong business momentum, reinforces commitment to customers

 

Bank of Baroda (Kenya) Limited reported a profit after tax of Sh4.39 billion for the nine months ended 30 September 2026, representing an 8.3% increase over Sh4.05 billion recorded during the corresponding period in 2025. Profit before tax and exceptional items rose by 20.4% year-on-year to Sh6.97 billion, reflecting improved underlying operating performance.

The results reflect the Bank’s continued business momentum and longstanding presence in Kenya, where it has operated since 1953. Growth in core banking income, lending and trade finance business, supported by a strong capital base and liquidity position, underscores the Bank’s financial strength and its continued focus on serving customers across the country.

Commenting on the performance, Mr Astitva Bhardwaj, Managing Director, Bank of Baroda (Kenya) Limited, said: “Our performance reflects the strength of our banking franchise in Kenya and the trust our customers continue to place in us. We remain committed to supporting our customers’ personal and business aspirations through responsive banking solutions, strong relationships and consistent service delivery. As we continue to grow our business, we are also progressively strengthening service delivery across our branches, including through digital channels, to enhance the overall customer experience and convenience. We will continue to invest in initiatives that make banking simpler, more accessible and efficient for our customers.”

Stronger core banking income drives performance

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 Sh 3.34 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.

Lending and trade finance business expand

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 and the Bank’s role in facilitating business transactions.

Improvement in asset quality

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.

Strong capital base and liquidity position

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 core capital-to-risk-weighted-assets ratio improved to 33.00%, against a regulatory minimum of 10.5%, while the total capital-to-risk-weighted-assets ratio reached 33.08%, compared with the minimum requirement of 14.5%.

The Bank’s liquidity ratio closed the period at 80.41%, four times the statutory minimum of 20%, underscoring its strong liquidity position.

Net worth strengthens further

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.

Enhancing customer experience through digital banking

As part of its ongoing commitment to enhancing customer convenience, Bank of Baroda (Kenya) Limited continues to expand digital banking adoption and enhance self-service capabilities, including the rollout of additional cash recyclers across its branch network. These initiatives are aimed at making everyday banking simpler, faster and more accessible for its customers, while facilitating improved service delivery and customer experience.

With an established presence in Kenya since 1953, Bank of Baroda (Kenya) Limited remains focused on sustainable business growth, prudent risk management and customer-focused banking. It is committed to serving its customers and supporting Kenya’s economic growth while executing its long-term business strategy. The Bank is licensed and regulated by the Central Bank of Kenya.