National Bank of Kenya (NBK) has recorded a 24 percent drop in its third-quarter profit after tax to KES 886 million, compared to KES 1,172 million in a similar period in 2021.
Even so, the bank’s, net interest income grew by 14 percent from the previous year to KES 6.9 billion as in the period under review.
The increase in net income was attributed to growth in interest income, which grew by 12 percent to KES 9.9 billion owing to increased volumes of loans and advances as well as improved level of recoveries.
Announcing the results, Peter Kioko, the bank’s Acting Managing Director said the results reflect the Bank’s continued investments in key areas of technology and operational excellence for future growth.
During the same period, the bank saw an eight percent growth in interest expense to KES 3 billion on account of the increased cost of funds.
“Our continued commitment to supporting our customers by offering sustainable financial solutions underscores our top-line performance. We remain focused on providing an enabling environment, especially for the MSME sector to continue to thrive by tailoring solutions to suit their need,” Kioko said.
“Going forward, we are focused on supporting our customers across the wide branch network and footprint and in the various sectors to enable them to achieve their aspirations.”
NBK’s total operating costs excluding provisions are at KES 6.5 billion, an increase of 12% from Q3 2021 mainly driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as Internet and agency banking platforms.
On the balance sheet side, total assets declined by 4 % to KShs. 140 billion, mainly from reduced government securities as customer deposits reduced by 6% mainly driven by corporate deposits. The 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.
Commenting on the bank’s future outlook, Kioko said: “Going into the future, we remain optimistic with regard to overall macro-economic outlook and therefore, as NBK, we are keen to leverage on strategic partnerships to support businesses and our individual customers in their growth priorities”.
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