National Bank of Kenya (NBK) has recorded a profit after tax of Ksh395 million for the quarter ending March 31, 2022. This was an increase of 72 percent compared to Ksh229 million that the bank posted during a similar period last year.
The growth was attributable to an increase in operating income which rose to Ksh2.7 billion in the period under review from Ksh2.4 billion in the same period last year, representing a 13 percent growth.
The increase in operating income was anchored on higher revenues from loan interest, and growth of five percent in non-interest income driven by increased accounts acquisition, and foreign exchange gains in retail and corporate clients.
Read: NBK Bleeds Ksh2.28 Billion In Fight With Former MP
“The results reflect strong underlying performance across all areas of the business and a fairly improving economy. We maintained a strong balance sheet growth supported by 17 percent increase in net customer loans and advances, further demonstrating our commitment to support various customer segments as the economy recovers from the impact of COVID 19 pandemic,” NBK outgoing Managing Director, Paul Russo, who has been appointed KCB Group Chief Executive Officer said
During the period, net interest income grew by 15 percent to Ksh2.2 billion as compared to Ksh1.9 billion the previous year. This was contributed by interest income which grew by 19 percent to Ksh3.2 billion as a result of increased volumes of loans and advances, as well as improved level of recoveries.
Total operating costs excluding loan loss provisions increased by percent to Ksh2 billion year on year. This was driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experiences such as Internet and agency banking platforms.
Read: KCB Group Plc Appoints Paul Russo As Group Chief Executive Officer
On the balance sheet side, total assets grew to Ksh140 billion, representing strong growth of eight percent year on year. The growth was majorly from net loans and advances which were up by Ksh10 billion to Ksh67 billion.
“We have kicked off the year with a strong start and I believe we have put in place the building blocks to unlocking the opportunities that will position the business for a period of sustained growth. We are especially keen on delivering on our commitment to supporting small businesses and individual customers during this economic recovery period,” said Mr Russo.
Read: Equity Group Shareholders To Harvest Ksh11 Bn As Lender Mints Ksh40 Bn In Profits
