Paramount Bank has exceeded the Central Bank of Kenya’s (CBK) minimum core capital requirement of KES 3 billion, reporting KES 3.118 billion as of September 2025.
This regulatory milestone, achieved ahead of the 31 December deadline, follows a KES 332 million rights issue from existing shareholders.
Despite a 52.85% YoY drop in Profit After Tax (PAT) to KES 110 million, the bank delivered strong growth in non-funded income, which surged 93.07% YoY to KES 279.98 million, driven by enhanced fee-based services and treasury operations. However, a 260% increase in loan loss provisions to KES 144 million impacted profitability.
“The strengthened capital position enables us to scale up lending, enhance operational resilience, and continue providing innovative financial solutions,” said Ayaz Merali, CEO, Paramount Bank.
Q3 2025 Financial Snapshot
| Metric | Sept 2024 | Sept 2025 | YoY Change |
|---|---|---|---|
| Core Capital | KES 3.06 Bn | KES 3.118 Bn | +2.03% |
| Non-Interest Income | KES 145.04 Mn | KES 279.98 Mn | +93.07% |
| Loan Loss Provision | KES 40.00 Mn | KES 144.00 Mn | +260.00% |
| Profit After Tax (PAT) | KES 233.22 Mn | KES 110.00 Mn | -52.85% |
| Government Securities | KES 2.48 Bn | KES 3.43 Bn | +38.31% |
The bank also dismissed market speculation regarding a potential acquisition by Nigeria’s Zenith Bank, reaffirming its independence and long-term growth strategy.
Nigeria’s Zenith Bank Plc issued a formal clarification on November 18, 2025, stating that no acquisition of Paramount Bank is underway. The bank emphasised that the reports circulating online were unauthorised and did not originate from Zenith Bank.
“The Bank wishes to formally notify the Nigerian Exchange Limited (NGX), our esteemed shareholders, investors, and the general public that the information currently circulating in the public domain was not released or authorised by the Bank,” read the statement.
Zenith Bank confirmed that it is pursuing a long-term strategic growth agenda, which includes exploring regional expansion opportunities in East Africa. Still, it clarified that no definitive decisions or transactions have been initiated. Regulatory engagement is ongoing as part of its broader growth objectives.
