The National Bank of Kenya (NBK) saw its asset base grow by 4% to Ksh.157 billion following the news of its acquisition by Nigeria’s Access Bank.
Access Bank already has a foothold in Kenya after it acquired Transnational Bank in 2019.
An asset base is the underlying value of assets that constitute the basis for the valuation of a firm. In this case, the asset base of NBK is its book value.
The record asset base growth comes as the lender’s profit before tax grew to a record Ksh.535 million.
It represents a 217% growth from Ksh.169 million in the same period last year.
Key Highlights of NBK Profit
- Asset base rose to Ksh.157 billion, 4% up year on year
- Customer deposits closed at Ksh.105 billion, 6% up year on year
- Net operating income of Ksh.3.4 billion, up 22%. Non-funded income contributed 29 % of operating income.
- Loan impairment charges for the period Ksh.548 million, 35% up year on year
- Profit after tax of Ksh.539 million, up 362% year on year
“We remain focused on customer-centricity and digital innovation to fully support and empower individuals and businesses to achieve their financial goals and aspirations,” said NBK Managing Director, George Odhiambo.
Also Read: NBK Net Profit Down to Ksh.2.9 Billion in Q3
He added that “growth is also attributed to demonstrating leadership in building industry expertise in key growth sectors, diversifying and differentiating our financial services and developing strategic partnerships with key enablers in the market.”
During Q1, NBK successfully upgraded the Core Banking System to T24 marking a strategic move to enhance operational efficiency, security, and customer experience.
The upgraded system has also helped optimizing internal processes, enabling NBK to deliver services more efficiently and effectively.
Awards and Recognition of NBK
In the period under review, the bank emerged 2nd in Tier Two Banks in Banking Customer Experience, according to the 2023 Banking Industry Customer Satisfaction Survey conducted by Kenya Bankers Association (KBA).
During the Finnovex East Africa Awards, the Bank was recognized for its innovative spirit, taking home the Outstanding Contribution to Fintech Initiatives-2024 Award.
KCB Group acquired NBK five years ago and has since struggled to fix the many issues it inherited, including significant capital constraints and non-performing loans.
And now, KCB will sell 100% of NBK at 1.25* its book value, which Paul Russo (KCB Bank CEO) said the move is necessitated by the bank’s turnaround strategy over the last four years.
“The board evaluated three options and made the decision that to protect the value and the efforts we’ve put in NBK, the right thing to do is to accept a binding offer from Access Group,” Russo said while releasing KCB Group’s 2023 financial results.
