NAIROBI, Kenya, May 25 – The National Bank of Kenya (NBK) has recorded a Sh117 million profit after tax for the first quarter ending March 2023 on increased income from non-funded revenue, which is income derived from fees and interests.
NBK’s non-funded income grew to Sh884 million from Sh551 million during a similar period last year.
“This was driven mainly by better performance in FX income, which registered an increase of 115%,” NBK said in a statement.
“Overall revenue increased by 1% for the quarter, as the growth in non-funded income was offset by a 14% reduction in net interest income, because of the challenging macro- economic environment,” it added.
Likewise, its balance sheet grew to Sh11.1 billion after customer deposits and loan advances grew.
Whereas loans and advances grew by Sh7.2 billion to Sh75 billion, customer deposits rose by 1.2 percent to Sh100 billion in the review period.
“The Bank’s foundation remains solid, reinforced by strong customer obsession and a highly liquid and well capitalized balance sheet that provides a platform for sustainable growth,” NBK Managing Director George Odhiambo said.
“We shall continue to deliver value and find opportunities that support inclusive long-term growth,” he said.
During the period, the bank received an injection of additional Tier II capital from the parent company, KCB Group PLC.
“Looking ahead, the Bank believes that the ongoing global economic recovery efforts will strengthen as the year progresses,” the Bank added.
“Considerable progress has been made on the priorities that include SME Banking as well as Agri and County Business.”
However, total operating expenses went up to Sh2.2 billion, an 11 percent jump largely driven by increased investments in strategic bank projects.
