1,007 total views, 1 views today
National Bank of Kenya (NBK) has posted KShs. 87million in profit after tax for the nine months ending September 2020. This represents a 77% decline over a similar period last year due to effects of the COVID-19 pandemic.
The bank recorded a profit before tax of KShs. 535million representing a 7% increase over a similar period in 2019.
The corporate and retail franchises of the Bank remained resilient, amid a subdued economy and reduced activity across sectors, due to the crisis.
“These results demonstrate the Bank’s resilience, in the face of a very challenging operating environment. They have been buoyed by ongoing efforts to turnaround this institution that have however been slowed down by effects of the COVID-19 pandemic,” said NBK Managing Director Paul Russo.
Non-funded income grew by 5% from the previous year, on increased focus on digital banking. Interest income stood at KShs. 7.2billion, a growth of 9% due to increased volumes in loans and advances as well as sustained recoveries. Comparatively, interest expense remained relatively flat at KShs. 2billion.
Total operating costs increased by 14%, largely driven by increased provisioning to cover for higher credit risks due to the pandemic in a period that also saw the Bank continue to drive cost management initiatives.
On the balance sheet side, total assets grew by 21% to KShs. 129.5billion from KShs.107billion, majorly from net loans and advances which were up 12% to KShs. 53billion. This was also supported by increased customers and deposits which grew by 24% to KShs.102billion. Total non-performing loans and advances stood at KShs. 23.3billion, a 15% drop from KShs. 27billion year on year.
The Bank recorded improvements in key ratios such as the capital position. Liquidity ratio was at 47.3%, compared to 35.7% in 2019.
“We remain cautiously optimistic about the future of the bank. We continue to invest in revamping our channels and delivering an unmatched experience to our customers,” Mr. Russo added.