National Bank of Kenya (NBK) has reported Ksh729 million profits after tax in H1 results compared to Ksh765 million over a similar period in 2021.
Whereas the Bank reported remarkable growth in total operating income at 13%, operating costs grew by 11% on the back of increased investments in strategic projects to enhance operational excellence and customer experience.
NBK Acting Managing Director Peter Kioko said that there was steady income growth, which the bank expects to increase in future periods when benefits from its current digitization and operational investments are realized.
“Our loan loss provision increased, highlighting the challenging lending environment of a tough economic period. Despite these challenges, the bank’s loan book grew to KShs. 69 billion and customer deposits grew to KShs. 112 billion. We maintained a strong balance sheet; total assets grew by 4% to KShs. 139 billion,” added Mr. Kioko.
Read: NBK Bleeds Ksh2.28 Billion In Fight With Former MP
During the period, net interest income grew by 18% from the previous year to KShs. 4.8 billion. This was largely contributed by interest income, which grew by 17% to KShs. 6.8 billion owing to increased volumes in loans and advances as well as improved level of debt recoveries. During the same period, interest expense grew to KShs. 2.0 billion on increased funding requirements of the bank.
National 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.
Looking ahead, Mr Kioko said: “We are on a steady growth trajectory and anticipate continued growth by supporting our clients and finding opportunities within the current environment. The Bank has a strong capital and liquidity base to support the growth of the business and especially through our digital offering. We have, therefore, embarked on a calculated strategy towards ensuring that we provide customer-centric and timely solutions to our customer segments.”
Email your news TIPS to editor@thesharpdaily.com
