Connect with us

Hi, what are you looking for?

/FILE

Kenya

NBK Posts 19pc growth in 1Q21 Profit After Tax

NAIROBI, Kenya, May 27 – National Bank of Kenya (NBK) has posted Sh184million in profit after tax for the first quarter of the year ending March 31 2021.

This represents a 19 percent growth compared to a similar period last year, driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.

NBK’s Managing Director Paul Russo said that the quarter was marked by pockets of slow recovery from effects of the COVID-19 pandemic due to the gradual reopening of the economy after a period of subdued activity.

“Having received a boost in Tier 2 Capital from the KCB Group PLC, we are now well positioned to continue growing the business and supporting our customers to weather effects of the pandemic. Further, the capital injection enhances our compliance with regulatory ratios,” added Russo.

The Group injected US$30 million in additional debt capital to NBK in April 2021 to enhance the Bank’s capital buffers.

During the quarter, net interest income grew by 5 percent from the previous year to stand at Sh1.9 billion. This was contributed by interest income which grew by 11 percent to Sh2.7 billion due to increased volumes of loans and advances as well as sustained recoveries. The quarter was marked by a 28 percent growth in interest paid on increased customer deposits, from transactions on the revamped digital channels.

Total operating costs during the quarter remained relatively flat at Sh2.09billion, compared to Sh2.11 billion over a similar period in 2020. This was despite increased investments in enhanced cybersecurity measures and revamp of the core banking system.

On the balance sheet side, total assets grew by 14 percent to Sh114 billion, majorly from net loans and advances, which were up 20 percent to Sh58billion. This was also supported by increased customer deposits which grew by 8 percent to Sh99billion due to increased flows among existing clients and new accounts in corporate and retail (including National Amanah – The bank’s Islamic Banking business) franchises of the Bank.

“We remain optimistic about prospects for this year in our efforts to turn around the bank and deliver value for our customers. As economic activity picks up, the bank’s enhanced capital position puts us in good stead to help our customers walk the path to recovery after the slowdown due to the pandemic,” Russo added.

Advertisement. Scroll to continue reading.
1 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...

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...

Headlines

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

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...