National Bank of Kenya

Nov 23, 2023

Capital Business By NAIROBI, Kenya, Nov 23 – National Bank of Kenya (NBK) has recorded Sh2.97 billion in loss after tax for the period ending 30 September 2023 compared to a similar period last year. This translates to a  436 percent decline over a similar period in 2022.On the flip side, the lender’s non refundable income grew by 49% year on year to Sh2.5 billion in this period. The lender has attributed the downward trajectory to one-off costs associated with legal matters, staff voluntary early retirement program in the first half of the year and an increase in loan loss provisions which has strained its incomes. Its total income for the period remained relatively flat year on year at Sh9.9 billion. NBK Managing Director George Odhiambo whole commenting on the financials exuded confidence of a brighter future adding that the company has put in elaborate strategies which is poised to catapult it back to profits. ”Despite the challenging market conditions and geopolitical dynamics all of which continue to cause monetary and fiscal pressure, we remain optimistic. Commitment to our strategic objectives and focus on prudent risk management, digital innovation, and customer-centricity continue to position us for sustained growth,” he said. “Our performance in Q3 also underscores the resilience of our business model and the dedication of our team in delivering value to our shareholders and customers,” he added. On the flip side, the bank’s non-funded income increased by 49 percent year on year to show Sh2.5 billion with, interest expense standing at Sh3.9 billion a growth of 31 percent mainly on elevated funding costs on both short term and long-term deposits in the market. This, the lender says, was mainly driven by increased revenues from foreign exchange trading coupled with increased volumes derived from the current digitization journey, launch of new products and strategic partnerships. Advertisement. Scroll to continue reading. Likewise, its customer deposits grew to Sh116 billion representing a 7 percent increase over a similar period in 2022 while its net loans and advances grew by 12 percent year on year to ShNB 78.2 billion. 0