After coming under fire for posting a loss of 1.2 billion shillings for the 2015 financial year, National Bank of Kenya has bounced back by making 334.6 million net profit during the first quarter of 2016, that is, between January and March.
The lender shocked both shareholders and customers last year when it announced losses out of the blues without the knowledge of many people and the loss was attributed to non-performing loans. The bank registered 1.2 billion losses by then.
Last year, at the same time, the bank made profits of 495 million shillings and with the current quarter profits of 334.6 million shillings it the same as a drop of 32.4 percent. According to these financial results, the net interest income for the lender increased from 1.9 billion shillings last year to 2.3 billion shillings this year.
The bank made losses last year as a result of non-performing loans and this appears to be still hanging in the lender’s neck as the current non-performing loan is at 16.97 billion shillings with this being an increase of 10 billion shillings from that of last year while the total loan book stands at 66.3 billion shillings. This is an increase of 5.2 billion in terms of the bank’s loan performance as compared to last year.
The lender has been under management tribulations for sometimes with some restructuring during the month of March where a total of six top managers including the Chief Executive Officer.
At the time of releasing the first quarter results, the deposits from the customers was at 99.4 billion shillings being an increase of 85.3 billion shillings increase as compared to the same time last year.
The Treasury owns 22.5 percent of National Bank of Kenya. The lender’s assets are at 115.6 billion shillings with this being a drop from 116.9 billion shillings.
Article by Juma Fred.