National Bank Posts Ksh 87 Million In Profits In 9 Months

The National Bank of Kenya has registered a drop in profits by 77 percent to 87 million shillings due to the impact of the Covid-19 pandemic. National Bank was taken over by KCB Group and has been striving to register a positive performance.

“These results demonstrate the Bank’s resilience, in the face of a very challenging operating environment. They have been buoyed by ongoing efforts to turnaround this institution that has however been slowed down by effects of the COVID-19 pandemic,” said NBK Managing Director Paul Russo.

During the period, National Bank said in a statement that its non-funded income grew by 5 percent from the previous year, on the increased focus on digital banking.

Interest income stood at 7.2billion shillings, a growth of 9 percent due to increased volumes in loans and advances as well as sustained recoveries. Comparatively, interest expense remained relatively flat at 2 billion shillings.

Total operating costs increased by 14 percent, largely driven by increased provisioning to cover for higher credit risks due to the pandemic in a period that also saw the Bank continue to drive cost management initiatives.

On the balance sheet side, total assets grew by 21 percent to 129.5 billion shillings from 107 billion shillings, majorly from net loans and advances which were up 12 percent to 53 billion shillings.

“We remain cautiously optimistic about the future of the bank. We continue to invest in revamping our channels,” Russo added.