NBK Net Profit Down to Ksh.2.9 Billion in Q3

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.

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button