NBK posts Kshs. 729 million half-year net profit
National Bank of Kenya (NBK), a subsidiary of KCB Group, reported KShs. 729 million profits after tax in half one results compared to KShs. 765 million over a similar period in 2021.
Whereas the Bank reported remarkable growth in total operating income at 13 per cent, operating costs grew by 11 per cent 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 per cent to KShs. 139 billion,” added Kioko.
During the period, net interest income grew by 18 per cent from the previous year to KShs. 4.8 billion. This was largely contributed by interest income, which grew by 17 per cent to KShs. 6.8 billion owing to increased volumes in loans and advances as well as improved levels 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, 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."
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Nine steel manufacturers slapped with record Sh338.8M fine for market distortion
The Competition Authority of Kenya has slapped nine steel manufacturers with a record Sh338.8 million fine for market distortion and price collusion.
According to the competition watchdog, the nine companies have been penalised for artificially inflating the prices of steel products.
The companies and their fines include Corrugated Steel Ltd (Sh86.9 million), Tononoka Rolling Mills Ltd (Sh62.7 million), Devki Steel Mills Ltd (Sh46.3 million), Doshi and Hardware Ltd (Sh41.6 million), Jumbo Steel Mills (Sh33.1 million) and Accurate Steel Mills Ltd (Sh26.8 million).
Others are Nail and Steel Products Ltd (Sh22.8 million), Brollo Kenya (Sh9.4 million) and Blue Nile Wire Products Ltd (Sh9.16 million).
CAK said investigations into the steel sector commenced in August 2020 when the Authority began collecting intelligence on pricing and output restriction.
The Authority's Acting DG Adano Wario said the penalties on the firms are proportional to the offense, specifically harming consumers who are grappling with the high cost of building materials in the country.
"Cartels are conceived, executed and enforced by businesses to serve their commercial interests and to the economic harm of consumers," Wario said.
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Kamau Thugge officially assumes office as 10th governor of the CBK
The Central Bank of Kenya (CBK) has officially announced the appointment of Kamau Thugge as its tenth Governor.
Thugge takes over from former governor Patrick Njoroge, who has completed two terms, each lasting four years. With a wealth of experience from his distinguished career in international and Kenyan public service, Thugge has made significant contributions to shaping economic policies and initiatives.
Having worked at the International Monetary Fund (IMF) and held various senior roles in Kenya's National Treasury, Thugge brings valuable expertise to his new position.
Earlier today, Patrick Njoroge handed over the reins to Kamau Thugge.
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