National Bank of Kenya profit increased by a billion. PHOTO /CORRESPONDENT

NBK Q3 2021 Net Profit up 1126% to KShs. 1.1 Billion

“Customer deposits grew to KShs. 115bn,
as net loans and advances rose by 22% to KShs. 65bn”.

By Douglas Muriithi

National Bank of Kenya (NBK) posted

KShs. 1.1 billion in profit after tax

for the nine months ending September

2021, representing a 1126% increase from

KShs. 87M in similar period last year.

This was driven by increased income from

loan interest and foreign exchange

trading coupled with lower loan loss

provisions and benefit from change in

corporation tax rate to 30%.

“In a period of unprecedented challenges

to our business, the banking sector and

the economy at large, I am extremely

proud of the excellent results that we

delivered for Q3. I am particularly

happy because of the actions we have

taken to support our stakeholders during

what has been a rapidly evolving

business environment. Despite the

ongoing economic impact of COVID-19, our

operating income increased 14.4% to

close Q3 at KShs. 7.6 billion. The low

levels of credit provisions also

resulted in an increase in profit after

tax of 1126%,” said NBK Managing

Director Paul Russo.

Mr. Russo further stated: “This

achievement is also attributed to the

great teamwork and our strong foundation

for long-term business strategy that

ensured we remained resilient in the

face of a difficult period.”

During the year, net interest income

grew by 17% from the previous year to

stand at KShs. 6.1 billion. This was

contributed by interest income, which

grew by 23% to KShs. 8.9 billion due to

increased volumes of loans and advances

as well as improved level of recoveries.

The third quarter of the year was

marked by a 39% growth in interest paid

to Kshs. 2.8 billion on increased

customer deposits, from transactions on

the revamped digital channels.

Total operating costs excluding

provisions are at KShs. 6 billion, a

slight increase over a similar period in

2020 driven by increased investments in

cybersecurity, strategic bank projects

to enhance operational excellence and

customer experience such as Internet and

agency banking platforms.

On the balance sheet side, total assets

grew by 13% to KShs. 146 billion,

majorly from net loans and advances,

which were up by KShs. 12 billion to

KShs. 65 billion. This was supported by

a growth of 12% customer deposits to

KShs. 115 billion due to increased

inflows among existing and new accounts

in corporate and retail (including

National Amanah – The Bank’s Islamic

Banking business) franchises of the


The Bank continues to maintain a high

liquidity profile of 49.6% placing it in

a strong position to continue

supporting its customers during the

ongoing economic challenges caused by

the COVID-19 pandemic.

While reflecting on the 2021 outlook,

Mr. Russo added: “Going into the future

and more so to enhance business

resilience, we will continue to provide

innovative value added and cost-

effective financial solutions to our

customers, striving to exceed their

expectations across our network. This

should be achieved against a background

of a stabilizing macro-economic

environment and steady economic growth

in the country. I am optimistic that we

have established a solid foundation from

which we will execute our strategic

priorities that will get us closer to

our customers wherever they are and

enable us to serve them better

National Bank of Kenya is a fully-

fledged Commercial Bank and is a

subsidiary of KCB Group Plc. Established

in 1968 to boost Kenyans’ access to

finance, it has grown to be one of the

largest commercial banks in the country

with a growing network of 85 branch

outlets across the country, over 1,500

ATMs and electronic channels of Mobile

and Internet Banking. In September 2019,

the Bank became a subsidiary of KCB

Group Plc following a successful

acquisition. National Bank participates

in Corporate Banking, Business Banking,

Retail Banking and Islamic Banking with

an extensive portfolio of products and

financial solutions tailored for the

requirements of a broad spectrum of

customer segments it serves.

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