The National Bank of Kenya (NBK) posted a Sh2.97 billion loss for the nine months ending September 30, 2023, compared to a profit of Sh0.8 billion in the same period in 2022.

The performance represents a 436% decline in profitability year on year.

NBK attributed the loss to one-off costs related to legal matters, staff voluntary early retirement program, and an increase in loan loss provisions.

Its total income was Sh9.9 billion, almost unchanged from the previous year. 

However, the bank’s non-funded income, which includes fees, commissions, and foreign exchange trading, grew by 49% to Sh2.5 billion, driven by increased volumes from digital innovation, new products, and strategic partnerships.

The bank’s interest expense rose by 31% to Sh3.9 billion, mainly due to higher funding costs on both short-term and long-term deposits. The bank’s customer deposits increased by 7% to Sh116 billion, while its net loans and advances increased by 12% to Sh78.2 billion.

National Bank of Kenya  Managing Director George Odhiambo expressed optimism for the future, saying that the bank has implemented strategic objectives and focused on risk management, customer-centricity, and growth. 

“Despite the challenging market conditions and geopolitical dynamics, all of which continue to cause monetary and fiscal pressure, we remain optimistic. Commitment to our strategic objectives and focus on prudent risk management, digital innovation, and customer-centricity continue to position us for sustained growth.”

KCB Group to Inject Ksh 938 Mn into National Bank


 

Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.

Leave A Reply Cancel Reply
Exit mobile version