National Bank’s Half Year Profits Up By 307 Percent

National Bank of Kenya (NBK) has posted 765 million shillings in profit after tax for the half-year ending June 30, 2021.

This represents a 307 percent growth compared to a similar period last year, driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.

“This has been a strong first half that will ensure we help our customers reposition for the awaited economic recovery going into the second half of 2021. We believe the new phase of normalcy will unveil growth opportunities for our customers and the Bank,” said NBK Managing Director, Paul Russo.

During the half-year, net interest income grew by 21 percent from the previous year to stand at 4.1 billion shillings contributed by interest income which grew by 24 percent to 5.8 billion shillings due to increased volumes of loans and advances as well as sustained recoveries.

The half-year was marked by a 30 percent growth in interest paid to 1.7 billion shillings on increased customer deposits, from transactions on the revamped digital channels.

Total operating costs during the Half-year remained relatively flat at 4.1 billion shillings over a similar period in 2020. This was despite increased investments in enhanced cybersecurity measures and revamp of the core banking system.

On the balance sheet side, total assets grew by 12 percent to 134 billion shillings, driven by growth in net loans and advances, which were up 20 percent to 60 billion shillings.

This was also supported by relatively flat customer deposits at 99.7 billion shillings sustained at the high levels due to increased inflows among existing clients and new accounts in corporate and retail (including National Amanah – The bank’s Islamic Banking business) business units of the Bank.

“Our capital and liquidity levels are secure enough to support our outlook for the rest of the year’s prospects for growth in our balance sheet, delivering an upturn in revenue growth and profits projected for 2021”. Said Russo.

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