NAIROBI, Kenya, Aug 22 – The National Bank of Kenya (NBK) has posted a net profit of Sh839 million in the half year ended June 30, 2024, an improvement from a pre-tax loss of Sh3.8 billion recorded during a similar period last year.
NBK attributes the performance to a 20 percent increase in the bank’s net operating income, which grew to Sh6.6 billion.
In the six months to June 2023, NBK profit was eaten by a Sh2.3 billion compensation to former Taveta MP Basil Criticos after the lender auctioned his sisal farm.
The Court of Appeal, while overturning a High Court judgement in favour of the lender, ruled that the sisal farm had been undervalued as it hosted quarry, buildings, among others, at the time.
“Despite the hard-economic times we experienced in the first half of the financial year, we have managed to turn things around and bring the bank back to profitability,” NBK Managing Director George Odhiambo said.
“This positive result underscores the effectiveness of our strategic initiatives and our commitment to delivering value to our shareholders.”
The subsidiary of the KCB Group, however, recorded a 9 percent decline in loan impairment charges to Sh886 million.
“As part of our ongoing commitment to enhancing our operational efficiency with the latest tools and technologies, we had the migration of our core banking system to Temenos T24 Transact Release 21, simplifying access to a wide range of banking and financial services for our customers,” Odhiambo added.
“We will continue to leverage technology to streamline our operations, enhance the customer experience, and stay ahead in a competitive market.”
