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NBK Chief Executive Munir Ahmed attributed the growth to improved revenues from balance sheet growth, cost management and better management of credit risks/FILE

Kenya

NBK posts Sh2.43bn FY profit in 2014

NBK Chief Executive Munir Ahmed attributed the growth to improved revenues from balance sheet growth, cost management and better management of credit risks/FILE

NBK Chief Executive Munir Ahmed attributed the growth to improved revenues from balance sheet growth, cost management and better management of credit risks/FILE

NAIROBI, Kenya, Mar 4 – The National Bank of Kenya (NBK) has posted Sh2.43 billion in 2014 full year pre-tax profit, marking a 34 percent increase from Sh1.81billion posted over a similar period in 2013.

NBK Chief Executive Munir Ahmed attributed the growth to improved revenues from balance sheet growth, cost management and better management of credit risks.

The bank’s total assets increased by 33 percent to Sh123 billion from Sh92 billion as at December 31, 2013 while customer deposits grew by 34 percent to Sh104.7 billion from Sh77.9 billion.

During the period, the bank laid off 190 staff through a voluntary retirement programme at a cost of Sh1 billion as the company seeks to lower costs and increase efficiency.

Interest income grew by 31 percent to Sh10.7 billion from Sh8.17 billion due to increase in loans and advances.

“The notable achievements under the transformational programme include a customer focused structure, new strategic business units and customer segments with enhanced customer service,” Ahmed added.

The bank is waiting for regulatory approval to offer a Rights Issue in 2015 seeking to raise Sh13 billion to fund its expansion projects.

Directors do not recommend a dividend payout.

Meanwhile NIC Bank Limited also released its 2014 full year results posting a 27 percent rise in profit after tax to Sh4.1 billion for the year ending December 31, 2014 compared to Sh3.2 billion in 2013.

Profitability was driven by robust growth in the balance sheet, enhanced business efficiencies and strengthened performance from the bank subsidiaries.

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Total operating income grew to Sh11.6 billion compared to Sh10.5 billion the same period last year, largely driven by increase in interest income and non-funded income.

The loan book grew by 22 percent, from Sh83.4 billion in December 2013 to Sh102.0 billion in December 2014.

The deposit base increased to Sh100.4 billion as at December 2014, reflecting a 10 percent growth from Sh91.5 billion in December 2013.

NIC Bank Group Managing Director John Gachora says focus going forward will be to deepen penetration in the retail and SME segments, as well as increase our footprint with new branches across the region.

“We are delighted with our results and remain optimistic that we will continue with this momentum into 2015. We anticipate the macro-economic fundamentals will remain fairly stable in 2015 with healthy GDP growth rates in Kenya, Uganda and Tanzania,” Gachora said.

NIC Bank Board recommends a first and final dividend of Sh1 per share.

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