Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
FILE

Finance

NBK posts 45pc profit growth for Q319


“With the improved capital base, our focus is now on integrating NBK into the group, while continuing to deliver innovative financial solutions that are attuned to the dynamic needs of our customers. We are optimistic about the bank’s fortunes,” Russo added/FILE

NAIROBI, Kenya, Nov 1 – National Bank of Kenya (NBK) has announced Sh675 million in profit before tax and exceptional items for the period ending September 30, 2019, representing a 45 percent increase over a similar period in 2018. 

The bank, which is now a subsidiary of KCB Group plc following a successful acquisition, weathered a difficult operating environment to deliver the impressive results.

The Bank’s Managing Director Paul Russo attributed the rise in profitability to growth in operating income during the period under review, adding that the future looks even more promising, since it is now part of a bigger stronger family.

“With the improved capital base, our focus is now on integrating NBK into the group, while continuing to deliver innovative financial solutions that are attuned to the dynamic needs of our customers. We are optimistic about the bank’s fortunes,” Russo added.

Operating income for the period stood at Sh6 billion, a 7 percent increase from Sh5.6 billion over the same period in the previous year.

This was mainly due to growth in interest earned from loans & advances and other earning assets, coupled with continuing diversification of funding base, which resulted in reduction of interest expense by 8 percent year on year.

Total expenses, however, increased by 4 percent year-on-year to Sh5.4 billion, mainly driven by increased loan loss provisions. Operating expenses excluding loan provisions remained relatively flat at Sh5.4billion

Customer deposits, reduced to Sh82 billion as at September 30, 2019 compared to Sh93 billion over the same period in 2018, driven by reduced customer flows and tight liquidity in the market.

Net loans and advances declined by Sh150 million to Sh47.8 billion over the same period issued due to recoveries collections made on existing loans.

Total assets dropped marginally by 5 percent to Sh107.2 billion compared to Sh112.45 billion in the same period last year

Advertisement. Scroll to continue reading.

“The bank achieved this level of growth against the backdrop of a challenging environment, both externally and internally. Our focus has been enhancing customer experience, preserving and optimizing value while effectively mitigating risks through proactive risk management,” Russo said.

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...