Home / News

Economy

  • 20

NBK Posts KShs. 1.1B in Full Year Net Profit

NBK Posts KShs. 1.1B in Full Year Net Profit

Nairobi, 18th March 2022…. National Bank of Kenya (NBK) has posted KShs 1.1 billion in profit after tax for full year 2021.

This represents a 431% increase from 2020, driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.

 NBK Managing Director, Paul Russo attributed the strong financial results to the Bank’s deliberate focus on its strategic initiatives which are anchored on customer experience.

 “Our strong performance was also supported by improving macro-economic environment and improved quality of credit. We maintained a strong balance sheet growth as evidenced by increase in customer deposits and 21 per cent growth in customer loans and advances,” said the MD.

 Operating income increased by 15% to KShs. 10.2 billion. The low levels of credit provisions also resulted in an increase in profit before tax of 330%.

During the year, net interest income grew by 18% from the previous year to KShs. 8.3 billion. This was contributed by interest income, which grew by 26% to KShs. 12.2 billion due to increased volumes of loans and advances as well as improved level of recoveries.

The year was marked by a 47% growth in interest expense to KShs. 4.0 billion on increased customer deposits, from transactions on the revamped digital channels, increased bank deposits as well as subordinated debt to shore up the capital requirements of the Bank.

Total operating costs excluding provisions are at KShs. 7.8 billion, a 7% increase from 2020 driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as Internet and agency banking platforms.

The balance sheet continued to expand, with total assets growing by 16% to KShs. 146 billion, majorly from net loans and advances, which were up by KShs. 12 billion to Kshs. 67 billion. The growth in assets was supported by a corresponding increase in customer deposits by KShs. 6.7 billion to KShs. 105.8 billion and deposits from banks by KShs. 8.1 billion to KShs. 21.5 billion as at 31 December 2021. The year witnessed deposits sustained at the high levels due to increased inflows from both existing and new clients in Corporate and Retail Banking businesses (including National Amanah – The Bank’s Islamic Banking business) franchises of the Bank.

During the year, the parent company KCB Group PLC approved the conversion of subordinated debt (KShs. 3.45 billion), which was classified as Tier II capital to equity. The conversion resulted in the Bank complying with regulatory ratios with regards to core capital as at 31 December 2021. 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.

The Bank continues to maintain a high liquidity profile of 42% placing it in a strong position to continue supporting its customers during the ongoing economic recovery following the COVID-19 pandemic.

 

“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 growth of 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 client segments especially in the SME sector,” said Mr. Russo

Previous News

Technology News

Samsung Announces Exciting Cashback and Affordability Offers on Galaxy A Series Smartphones for Festive Season

Samsung Announces Exciting Cashback and Affordability Offers on Galaxy A Series Smartphones for Festive Season

Gurugram, India – October 11, 2023: Samsung announced exciting offers

HMD Nokia G42 5G (16GB+256GB) Variant Launched: With Snapdragon 480 Plus 5G Chipset Powers & Stylish Colours

HMD Nokia G42 5G (16GB+256GB) Variant Launched: With Snapdragon 480 Plus 5G Chipset Powers & Stylish Colours

Bangalore, 10th October 2023: The Nokia G42 5G (16GB+256G

IN-SPACe unveils Decadal Vision & Strategy for Indian Space Economy

IN-SPACe unveils Decadal Vision & Strategy for Indian Space Economy

Bengaluru, October 10, 2023  IN-SPACe (Indian National Space Promotion and

Philips OneBlade Partners with College Rivals for an Epic Gaming Journey Enabling Gen Z to ‘Move Fearlessly’

Philips OneBlade Partners with College Rivals for an Epic Gaming Journey Enabling Gen Z to ‘Move Fearlessly’

New Delhi, October 3, India- Philips India announces an exciting co

Latest Business News

SANY India partners with J&K Bank to provide financial solutions to its customers

SANY India partners with J&K Bank to provide financial solutions to its customers

Mumbai, March 13, 2024SANY India, a leading manufacturer of construction equipment, has taken a

Radisson Hotel Group strengthens footprint in Ayodhya with signing of 150-room Radisson Blu Hotel, Ayodhya

Radisson Hotel Group strengthens footprint in Ayodhya with signing of 150-room Radisson Blu Hotel, Ayodhya

Continuing its expansion plan in India, Radisson Hotel Group is excited to announce the signing of 150-room Radisson Blu Hotel, Ayodhya. A greenfie

purchase anastrozole order anastrozole pills order arimidex 1mg without prescription

buy naproxen sale naproxen 500mg tablet order lansoprazole 15mg without prescription

generic biaxin 500mg clonidine 0.1 mg over the counter antivert 25mg tablet

proventil 100 mcg tablet buy pantoprazole ciprofloxacin sale

tiotropium bromide 9mcg sale spiriva 9 mcg cheap purchase hytrin without prescription

singulair 10mg drug viagra 50mg over the counter brand viagra 100mg

cheap actos 30mg order viagra sale cheap viagra pills

order generic cialis 40mg best over the counter ed pills levitra vs cialis

order tadalafil for sale Buy cialis once daily online roulette free

buy ivermectin 3mg order stromectol 6mg pill dapsone 100 mg over the counter

free roulette online casino gambling hollywood casino online

casino bonus free casino blackjack online real money

buy adalat generic perindopril 4mg canada purchase fexofenadine generic

slots free online free online poker games pre written essays for sale

order generic ramipril 10mg ramipril 5mg for sale etoricoxib 120mg over the counter

doxycycline canada ventolin 2mg pill cleocin 150mg price

academic writing support research paper help online azulfidine cost

asacol 800mg usa order irbesartan sale oral avapro 150mg

olmesartan 20mg canada depakote drug depakote 250mg pill

buy clobetasol without prescription clobetasol generic amiodarone price