This archive report was first published on 4 November 2019.
Published on November 4, 2019, National Bank of Kenya (NBK) announced a significant increase in profit before tax and exceptional items for the period ending September 30, 2019. The bank reported a 45% increase over a similar period in 2018, with a profit of Ksh675 million.
The bank's Managing Director, Paul Russo, attributed the rise in profitability to growth in operating income during the period under review. He noted that the bank's improved capital base and integration into the KCB Group Plc would continue to drive growth.
Operating income for the period stood at Ksh 6.0 billion, a 7% increase from Ksh5.6 billion over the same period in the previous year. This growth was driven by an increase in interest earned from loans & advances and other earning assets, as well as a reduction in interest expense by 8% year on year.
However, total expenses increased by 4% year-on-year to KShs 5.4 billion, mainly driven by increased loan loss provisions. Customer deposits reduced to Ksh82 billion as at September 30, 2019, compared to Ksh93 billion over the same period in 2018, driven by reduced customer flows and tight liquidity in the market.
Net loans & advances declined by Ksh150 million to Ksh47.8 billion over the same period issued due to recoveries collections made on existing loans. Total assets dropped marginally by 5.0% to Ksh107.2 billion compared to KSh112.45 billion in the same period last year.
