Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The bank has posted Sh334 million net profit in the period under review from a pre-tax loss of Sh1.18 billion recorded in the full year 2015/FILE

Kenya

NBK’s non-performing loans hit Sh15bn

The bank has posted Sh334 million net profit in the period under review from a pre-tax loss of Sh1.18 billion recorded in the full year 2015/FILE

The bank has posted Sh334 million net profit in the period under review from a pre-tax loss of Sh1.18 billion recorded in the full year 2015/FILE

NAIROBI, Kenya, May 26 – The National Bank of Kenya’s non performing loans have hit Sh15 billion in the first three months of the year, a 124 percent increase compared to Sh6 billion recorded over the same period in 2015.

This is also 51 percent increase compared to Sh9 billion number as at December 2015.

The bank has posted Sh334 million net profit in the period under review from a pre-tax loss of Sh1.18 billion recorded in the full year 2015.

This was however a reduction compared to the first quarter of 2015 that recorded Sh498 million.

This comes even as the firm axed three suspended top managers that include the Chief Executive Officer Munir Ahmed, Chief Finance Officer Chris Kisire as well as the Executive Director in charge of corporate institutional and business banking Boniface Biko.

The three managers are part of the six other top officials who had been suspended last month and immediately proceeded on compulsory leave after they were accused of mismanagement and questionable transactions.

According to the NBK Board of Directors, the six had been surrounded by numerous accusations including illegal loan disbursement, high number of staff turnover and audit related queries.

Loans and advances to customers stood at Sh66 billion in the period under review down from Sh70 billion recorded same period last year.

Total assets went down to Sh115 billion compared to Sh117 billion recorded same period in 2015 and Sh125 billion as at the end of December 31, 2015.

Customer deposits stood at Sh1.2 billion while interest income was at Sh3.5 billion.

Advertisement. Scroll to continue reading.

Staff costs dropped to Sh880 million in the period under review compared to Sh912 million recorded same period last year.

The board of directors did not recommend the payment of dividends.

Wilfred Musau is currently the acting CEO, while Henry Maosa took over as the Chief Finance Officer.

Reuben Koech is the Executive Director in charge of corporate institutional and business banking in acting capacity.

According to the Central Bank of Kenya, Kenyan banks’ non-performing loans rose to 8 percent of the total in March 2016 from 5.7 percent in the same period last year.

Gross loans for the industry stood at Sh2.2 trillion as at March 2016, up from Sh2 trillion in March last year.

CBK Governor Patrick Njoroge has made reporting requirements for banks more stringent, making them categorise bad debts accurately and provide for them fully.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...