National Bank of Kenya (NBK) posted Kshs. 186million in pre-tax profit for the first half of the year ending June, representing a 62% increase from a similar period last year.
According to the bank that is currently under the management of KCB the results were driven by a growth in the loan book and enhanced returns from investments in government securities.
However, profit after tax reduced from KShs.107 million to a loss of Kshs. 381million due to a one off tax adjustment after the recent change in corporate tax.
“We remained resilient during the first half of the year, despite the slowdown occasioned by the pandemic. We are replacing non-performing loans with quality ones; and constantly innovating to align with current realities,” said Paul Russo, the NBK Managing Director
“We are focused on delivering valuable partnerships and solutions to our customers.
These efforts are bearing fruit as demonstrated by a recent survey of customers, whose overall feedback was appreciation for our dedication,” added Mr. Russo.
The Bank’s total operating income for the period grew by 12% to Kshs. 4.3billion, driven by increased interest and non-interest income. Following the bank’s waiver on charges for transactions on digital channels, as a measure to mitigate the impact of COVID-19, fees and commissions during the period remained relatively flat. Operating costs were stable on the back of ongoing cost management initiatives.
The Bank’s balance sheet for the period grew to Kshs. 119billion driven by growth in customerloans and deposits. Customer deposits rose to Kshs. 99.6billion, from Kshs. 91.7billion in a similar period in 2019; with liquidity improving to 50.2% from 40.7% over a similar period.
Loans and advances increased by Kshs. 2.9billion to Kes 50.2billion.
The Bank’s recovery journey stayed on course during the first half, with the Non-Performing
Loans (NPL) shrinking by 12% for the period ending June 30, 2020 to stand at Kshs. 28.6billion, compared to Kshs. 32.4billion last year.
NBK has taken measures to cushion customers from negative impacts of the pandemic. This includes restructuring customer loans, in addition to suspending listing on the credit reference bureau and waiver of fees charged on use of digital channels.
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