The National Bank of Kenya (NBK) has reported a loss after tax of Ksh.2.97 billion for the period ending 30 September 2023, marking a 436% decline compared to the same period in 2022.
This significant drop in profitability is primarily attributed to one-time costs related to legal issues, an early voluntary retirement program for staff implemented in the first half of the year, and an increase in provisions for loan losses.
Non-funded income saw a 49% year-on-year increase, reaching Ksh.2.5 billion. This growth was fueled by increased revenues from foreign exchange trading, along with higher volumes resulting from the bank’s ongoing digitization efforts, the introduction of new products, and strategic partnerships.
Total interest income for the period remained relatively stable year-on-year at Ksh.9.9 billion. Conversely, interest expense rose to Ksh.3.9 billion, a 31% increase, primarily due to higher funding costs for both short-term and long-term deposits in the market.
Customer deposits grew to Ksh.116 billion, a 7% increase compared to the same period in 2022.
Net loans and advances also saw a year-on-year growth of 12%, reaching Ksh.78.2 billion.
“Our commitment to our strategic objectives and focus on prudent risk management, digital innovation, and customer-centricity continue to position us for sustained growth. 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,” said NBK’s Managing Director, George Odhiambo.