National Bank of Kenya (NBK-NSE) recorded profit before tax of Ksh. 2.5Billion for the first half ended 30 June 2015 surpassing its full year 2014 trading profits (Ksh2.43 Billion) in an impressive half year run.
This was also double the Ksh. 1.25 billion PBT posted in a similar period in 2014.
National Bank’s Managing Director and Chief Executive Officer, Mr. Munir Sheikh Ahmed attributed the commendable results to improved revenues delivered by new segments of the business, cost management and better credit risk control. “Attaining a CAGR of 93% trading profit over a two year period is a hallmark for us and a remarkable achievement in the Bank’s history. It shows the effort and dedication in putting in place industry best practices to ensure that the business runs efficiently are paying off,” said Mr. Munir.
Total operating income grew by 29% to Ksh. 6.2bn in 2015 from Ksh. 4.8bn in 2014. Interest income grew YoY by 33% to Ksh. 6.4bn from Ksh. 4.8bn. This was mainly due to a marked increase in market share and in loans and advances.
During the same period total operating expenses decreased by 2% from Ksh. 3.4bn in 2014 to Ksh. 3.3bn in 2015. “It is remarkable that our costs are reducing year on year when the business volumes are increasing, branch network expanding and while we are making significant investment in technology and new product lines. This is being achieved through centralization, automation and headcount reduction undertaken in the last two years,” he said.