Consolidated Bank of Kenya has bounced back into profit, posting a strong turnaround for the year ending December 31, 2025, after making losses the previous year.
The government-owned lender reported a profit after tax of Ksh 217.5 million, marking a sharp recovery from the Ksh 135 million loss recorded in 2024. This represents a 261 per cent growth, underlining a year of tighter cost control and improved income streams.
A big part of this turnaround came from lending activities. Net interest income rose by 38 per cent to Ksh 1.3 billion, up from Ksh 940 million a year earlier. The bank also grew its non-funded income — money earned from fees, commissions and other services — by 11 per cent to Ksh 631 million.
This pushed total income to Ksh 1.9 billion, the highest the bank has recorded so far, compared to Sh1.5 billion in 2024, a 28 per cent increase.
Acting Chief Executive Officer Dominic Murage said the performance is a result of deliberate changes within the bank.
“This performance demonstrates the impact of the strategic efficiency measures we implemented across the business, which have enabled significant cost savings. Maintaining these efficiency levels will remain a priority going forward,” he said.
Murage added that the lender is doubling down on its niche, especially small businesses and government-linked clients.
“Small and Medium Enterprises (SMEs) remain central to our business model and portfolio, and we intend to deepen our support for them. Additionally, as a government-owned institution, we are uniquely positioned to support public sector financing needs. We aim to strengthen our collaboration with government agencies, parastatals, universities and ministries to position Consolidated Bank as the preferred banking partner for the public sector,” he added.
On the balance sheet, the bank’s total assets grew by 11 per cent to Ksh 19.5 billion, up from Ksh 17.5 billion in 2024. This growth was largely driven by increased investment in government securities, which jumped by 29 per cent to Ksh 8.2 billion from Ksh 6.4 billion, a sign the bank is leaning more on safer, low-risk assets.
Loans and advances to customers rose only slightly, by 1 per cent to Sh8.6 billion, indicating a cautious lending approach in a tough economic environment marked by high interest rates and tighter credit conditions across Kenya’s banking sector.
Customer deposits also rose, increasing by 10 per cent to Ksh 12.3 billion from Ksh 11.7 billion. This reflects improved confidence among customers and a broader deposit mobilisation strategy by the bank.
Despite the changes, the lender maintained a strong liquidity position, with its liquidity ratio standing at 30 per cent, well above the minimum regulatory requirement set by the Central Bank of Kenya.
The latest results mirror a wider trend in Kenya’s banking industry, where several mid-tier and state-linked banks are focusing on efficiency, digital channels and government-backed business to stay competitive.
For Consolidated Bank, which was originally formed to take over struggling financial institutions, the return to profitability signals a steady rebuilding phase, one that now leans heavily on cost discipline, public sector partnerships, and SME financing to sustain growth.
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