Paramount Bank Q1 Net Profit Drops 13.9% to KSh80.3Mn

Paramount Bank saw its net profit for the period ended 31^st March 2026 drop 13.9% to KSh 80.35 Million from KSh 93 38 Million over a similar period last year.  Total Interest Income declined 14.9% to KSh 432.09 Million. Net loans and advances grew 10.9% to KSh 9.08 Billion from KSh 8.19 Billion in Q1 2025.

Paramount Bank shrunk its provisions for loan loss to KSh 20 Million while Core Capital ratio strengthened to 26% from 20.1% following acquisition of the lender by Zenith Bank.

The lender’s balance sheet size also shrunk 0.4% from KSh 16.74 billion to KSh 16.67 billion, pushed down by a drop in customer deposits of 5.1% to KSh 12.86 billion from KSh 13.55 billion in Q1 2025.

Nigeria’s Zenith Bank has already received all the necessary approvals to acquire Paramount Bank.

Zenith Bank’s entry into Kenya, Nigeria’s second largest lender, has yet to use its deep pockets to inject more competition in Kenya’s banking space, trigger heightened regional competition and create more possibilities for business and individual customers.

Paramount Bank was established in 1993 as Combined Finance Limited, a non-bank financial institution. It got a banking license in 1995 and became Paramount Bank Limited. In 2000, it merged with Universal Bank Ltd to form Paramount Universal Bank, before reverted to Paramount Bank Limited in 2005.

Acquisition of Paramount by Zenith enabled the local lender to CBK new minimums core capital requirement for banks from KSh 1 billion to KSh 3 billion by December 2025, and further to KSh 10 billion by 2029. These new thresholds have forced small-sized banks to either recapitalise, merge, or sell to comply.

Nigeria’s Zenith Bank is Africa’s second largest lender by market capitalization and its entry into Kenya’s overcrowded banking business could trigger renewed competition, especially for East Africa’s banking business.

This region has now attracted interests from South Africa and Western Africa banking giants to challenge the long held dominance of European lenders.

Nigerian Banks in Kenya:

Zenith Bank will be the fourth lender to operate in Kenya’s banking space after United Bank of Africa(UBA), Guaranty Trust Bank (GT Bank), Access Bank which acquired National Bank of Kenya and Transnational Bank Plc.

Zenith Bank Nigeria planned entry into Kenyan is seen as a launching pad for the cash rich lender to push its presence in the East African region. Zenith Bank recently announcement plans to expand into Côte d’Ivoire and eight other Francophone African countries.