This archive report was first published on 30 August 2019.
Published on August 30, 2019, National Bank of Kenya (NBK) has returned to profitability, reporting a Sh150 million half-year net profit. The lender, which is a target of acquisition by KCB Group, made most of its money from savings on interest expenses, with key revenue streams remaining flat.
The bank's Chief Executive, Wilfred Musau, attributed the growth to a challenging environment, both externally and internally. 'The bank achieved this lever of growth against the backdrop of a challenging environment, both externally and internally,' he said in a statement.
However, NBK's loan book took a hit of Sh480 million, confirming its precarious financial condition as it continues to violate capitalisation requirements as set by the Central Bank of Kenya (CBK).
On the other hand, I&M Holdings announced a 17 per cent rise in net profit growth for the same period to Sh4.5 billion, helped by an increase in non-funded income, including fees and commissions. Customer deposits, on the other hand, grew by over a tenth to Sh237.2 billion as of June 2019.
Regional insurer Jubilee Holdings also announced an 11 per cent increase in gross written premiums to Sh20.7 billion from Sh18.7 billion for the half-year to June 30, 2019. Group Chairman Nizar Juma said the firm recorded a profit after tax of Sh1.8 billion while total assets increased by nine per cent from Sh114.2 billion to Sh124.3 billion.
