National Bank posts 42pc drop in profit

July 26, 2017
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Total Assets remained flat at Sh116 billion while customer deposits hit Sh98 billion a 3 percent increase from the prior year./FILE

, NAIROBI, Kenya, Jul 26 – National Bank of Kenya (NBK) has posted a 42 percent decline in net profit in its first of 2017 to Sh179 million compared to Sh311 million same periods 2016.

The decline is attributable to reduced earnings from Interest income that went down by 34 percent to hit Sh4.5 billion in the period under review compared to Sh6.9 billion in 2016 as interest rates capping bites.

Loans and advances reduced by 11 percent to Sh57 billion compared to Sh67 billion same periods 2016.

Total Assets remained flat at Sh116 billion while customer deposits hit Sh98 billion a 3 percent increase from the prior year.

Unconfirmed reports had intimated that the bank is set to be acquired by Kenya Commercial Bank (KCB) Group.

The reports indicate that KCB Group has formally approached the National Treasury and the National Social Security Fund, the major shareholders of NBK, with a written proposal of taking over the bank.

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