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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