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NBK Managing Director and Chief Executive Officer Wilfred Musau

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NBK attributes 153% rise in 1H19 profits to growth in operating income

NBK Managing Director and Chief Executive Officer Wilfred Musau/Courtesy

NAIROBI, Kenya, Aug 29 – National Bank of Kenya has announced a 153% rise in after-tax profit for the period ending June 30, 2019, representing Sh150 million more than 2018 earnings.

The Bank’s Managing Director and Chief Executive Officer Wilfred Musau said the rise in profitability was attributed to growth in operating income during the period under review.

Operating income for the period was Sh9 billion, a 6% increase from Sh3.6 billion over the same period in the previous year mainly due to an increase in interest from lending,investments and a reduction in interest expense.

“Total expenses, however, increased by 6% year on year mainly driven by increased loan loss provisions and operating expenses,” explained the CEO.

Customer deposits, declined to Sh91 billion as at June 30, 2019 compared to Sh96 billion over the same period in 2018. Net loans & advances declined by Sh480 million over the same period on account of reduced volumes in new loans issued and collections made on existing loans.

Total assets grew marginally by 1.1 per cent to Sh114.59 billion compared to Sh113.34 billion in the same period last year.

“The bank achieved this level of growth against the backdrop of a challenging environment, both externally and internally. The bank remains steadfast in its mandate for 2019,” Musau concluded.

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