NBK Reports KShs. 886 Million in Net Profit the Third Quarter of 2022

NBK Reports KShs. 886 Million in Net Profit the Third Quarter of 2022

November 16, 2022… National Bank of Kenya (NBK) has posted a profit after tax of KShs. 886 million in its third quarter results ending September 30, 2022 compared with KShs. 1,172 million a similar period in 2021.

The results, said Peter Kioko, the Acting Managing Director of NBK, reflect the Bank’s continued investments in key areas of technology and operational excellence for future growth.

During the period, net interest income grew by 14% from the previous year to KShs. 6.9 billion as of 30 September 2022. This was contributed by interest income, which grew by 12% to KShs. 9.9 billion owing to increased volumes of loans and advances as well as improved level of recoveries. During the same period, there was an 8% growth in interest expense to KShs. 3 billion on account of increased cost of funds.

“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 Mr Kioko. “Going forward, we are focused on supporting our customers across the wide branch network and footprint and in the various sectors to enable them to achieve their aspirations,” he added.

Total operating costs excluding provisions are at KShs. 6.5 billion, an increase of 12% 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 side, total assets declined by 4 % to KShs. 140 billion, mainly from reduced government securities as customer deposits reduced by 6% mainly driven by corporate deposits. 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.

Commenting on the bank’s future outlook, Mr. Kioko said: “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”.

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