NBK Profits Increase By 72% to KShs. 395 Million after Tax in 2022 First Quarter

NBK Profits Increase By 72% to KShs. 395 Million after Tax in 2022 First Quarter

National Bank of Kenya (NBK) has recorded a profit after tax of KShs. 395 million for the quarter ending March 31, 2022. This was an increase of 72% compared to KShs. 229 million that the bank posted during a similar period last year.

The growth was attributable to increase in operating income which rose to KShs. 2.7 billion in the period under review from KShs. 2.4 billion in the same period last year, representing a 13% growth.

The increase in operating income was anchored on higher revenues from loan interest, and a growth of 5% in non-interest income driven by increased accounts acquisition, and foreign exchange gains in retail and corporate clients.

NBK outgoing Managing Director, Paul Russo, who has been appointed KCB Group Chief Executive Officer said: “The results reflect strong underlying performance across all areas of the business and a fairly improving economy. We maintained a strong balance sheet growth supported by 17% per cent increase in net customer loans and advances, further demonstrating our commitment to support various customer segments as the economy recovers from the impact of COVID 19 pandemic,” said Mr. Russo.

During the period, net interest income grew by 15% to KShs. 2.2 billion as compared to KShs. 1.9 billion the previous year. This was contributed by interest income which grew by 19% to KShs. 3.2 billion as a result of increased volumes of loans and advances, as well as improved level of recoveries.

Total operating costs excluding loan loss provisions increased by 5% to KShs. 2.0 billion year on year. This was 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 side, total assets grew to KShs. 140 billion, representing a strong growth of 8% year on year.  The growth was majorly from net loans and advances which were up by KShs. 10 billion to KShs. 67 billion.

The Bank’s capital and liquidity levels remain very strong, firmly enabling the bank to support its customers, especially those in the SME sector. Additionally, NBK concerted recovery efforts, have contributed in stabilizing the credit portfolio.

“We have kicked off the year with a strong start and I believe we have put in place the building blocks to unlock the opportunities that will position the business for a period of sustained growth. We are especially keen on delivering on our commitment to supporting small businesses and individual customers during this economic recovery period,” said Mr. Russo.