Tier III lender Paramount Bank closed the third quarter with flat profitability after a jump in credit impairment charges erased gains in non-interest income, but strengthened its balance sheet enough to exceed the CBK’s 3 billion core-capital requirement ahead of the December 2025 deadline.
- •The update came days after Zenith Bank Plc dismissed reports that it was pursuing an acquisition of the Kenyan lender.
- •Non-funded income rose 93.07% to 279.98 million, lifting operating income 17.09% to 754.82 million despite a 5% drop in core business tied to weaker net interest income.
- •Higher costs and rising provisioning pressure restrained the bottom line wit the total operating expenses increasing 31.70% to 548.79 million and loan loss provisions jumping 260% to 144.00 million from 40.00 million.
Profit before tax fell 9.59% to 206.10 million and profit after tax held steady at 234.75 million. Total assets rose 3.90% to 16.49 billion and customer deposits increased 4.98% to 12.86 billion.
| Metric | Sept 2024 | Sept 2025 | YoY % |
|---|---|---|---|
| Net Interest Income | 499.81 Mn | 474.87 Mn | ▼-4.99% |
| Non-Interest Income | 145.04 Mn | 279.98 Mn | ▲+93.07% |
| Operating Income | 644.65 Mn | 754.82 Mn | ▲+17.09% |
| Total Operating Expenses | 416.67 Mn | 548.79 Mn | ▲+31.70% |
| Loan Loss Provision | 40.00 Mn | 144.00 Mn | ▲+260.00% |
| Profit Before Tax (PBT) | 227.98 Mn | 206.10 Mn | ▼-9.59% |
| Profit After Tax (PAT) | 233.22 Mn | 234.75 Mn | ▲+0.66% |
| Total Assets | 15.87 Bn | 16.49 Bn | ▲+3.90% |
| Total Equity | 2.82 Bn | 3.49 Bn | ▲+23.76% |
| Customer Deposits | 12.25 Bn | 12.86 Bn | ▲+4.98% |
| Loans & Advances (Net) | 8.23 Bn | 8.59 Bn | ▲+4.37% |
| Gross NPLs | 1.51 Bn | 2.24 Bn | ▲+48.34% |
| Core Capital | 2.48 Bn | 3.12 Bn | ▲+25.81% |
| Government Securities | 3.203 Bn | 4.061 Bn | ▲+26.80% |
Loans and advances grew modestly at 4.37% to 8.59 billion. Gross non-performing loans increased 48.34% to 2.24 billion. Government securities holdings rose 26.8% to 4.06 billion.
Core capital reached 3.12 billion, placing the lender above the 3 billion minimum required by 31 December 2025 under the phased capital-reform programme. The threshold will rise each year through 2029, adding pressure on smaller banks to strengthen capital buffers or consolidate.
The financial update coincides with speculation that Nigeria’s Zenith Bank is seeking to acquire Paramount Bank. Zenith issued a formal statement on 18 November 2025 denying the reports, saying the information circulating was not authorised and that no definitive decisions on acquiring any East African institution had been made. The lender said it is exploring regional expansion opportunities but will disclose any transaction that requires regulatory notification.
Paramount Bank is ranked 33 out of 39 commercial banks in Kenya by market share, according to the CBK’s classification for December 2025.
