NATIONAL BANK OF KENYA PROFIT INCREASE

NBK profit shoots. PHOTO / CORRESPONDENT

National Bank of Kenya profit shoots

By Douglas Muriithi

National Bank of Kenya (NBK) posted a

profit after tax of KShs. 886 million in

its third quarter results ending

September 30, 2022 compared with KShs.

1,172 million a similar period in 2021.

The results, said Peter Kioko, the

Acting Managing Director of NBK, reflect

the Bank’s continued investments in key

areas of technology and operational

excellence for future growth.

During the period, net interest income

grew by 14% from the previous year to

KShs. 6.9 billion as of 30 September

2022. This was contributed by interest

income, which grew by 12% to KShs. 9.9

billion owing to increased volumes of

loans and advances as well as improved

level of recoveries. During the same

period, there was an 8% growth in

interest expense to KShs. 3 billion on

account of increased cost of funds.

“Our continued commitment to supporting

our customers by offering sustainable

financial solutions underscores our top

line performance. We remain focused on

providing an enabling environment

especially for the MSME sector to

continue to thrive by tailoring

solutions to suit their need” said Mr

Kioko. “Going forward, we are focused on

supporting our customers across the

wide branch network and footprint and in

the various sectors to enable them to

achieve their aspirations,” he added.

Total operating costs excluding

provisions are at KShs. 6.5 billion, an

increase of 12% from Q3 2021 mainly

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

declined by 4 % to KShs. 140 billion,

mainly from reduced government

securities as customer deposits reduced

by 6% mainly driven by corporate

deposits. The Bank is implementing other

internal strategies aimed at raising

organic capital including rigorous bad

debt collection and balance sheet growth

to boost profitability, which will

ensure full compliance with the capital

ratios.

Commenting on the bank’s future outlook,

Mr. Kioko said: “Going into the future,

we remain optimistic with regard to

overall macro-economic outlook and

therefore, as NBK, we are keen to

leverage on strategic partnerships to

support businesses and our individual

customers in their growth priorities”.

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