National Bank of Kenya (NBK) recorded Ksh.886 million net profit for the year ending September 30, 2022.
This is a 24.4 percent drop compared to Ksh.1.17 billion recorded same period in 2021.
NBK interim Managing Director Peter Kioko said the results reflect NBK’s continued investments in key areas including technology and operational excellence for future growth.
“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,” said Kioko.
During the period, net interest income grew by 14 percent from the previous year to Ksh.6.9 billion. This was contributed by interest income, which grew by 12 percent to Ksh.9.9 billion owing to increased volumes of loans and advances as well as improved level of recoveries.
There was an 8 percent growth in interest expense to Ksh.3 billion on account of increased cost of funds.
Total operating costs excluding provisions were recorded at Ksh.6.5 billion, a 12 percent increase 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, total assets declined by 4 percent to Ksh.140 billion, mainly from reduced government securities as customer deposits reduced by 6 percent mainly driven by corporate deposits.
Kioko said the lender would leverage strategic partnerships to foster growth in its profitability, and by extend, individual customers in their growth priorities.
“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.”
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.