NBK pre-tax profit up by 11 per cent

By James Anyanzwa and Reuters

National Bank of Kenya (NBK) has announced 11 per cent growth in pre-tax profit for the six months period ended June 30, this year.

The bank’s profit before tax climbed to Sh1 billion from Sh902 million recorded in a similar period last year.

The bank, which derives about half of its business from Government agencies, attributed the rise in profit to a steady increase in interest income, which grew by 10 per cent to Sh2.1 billion from Sh1.9 billion.

"The sector that has been growing faster is personal lending, especially unsecured, to salaried individuals," the bank’s Managing Director Reuben Marambii told reporters in Nairobi, yesterday.

Mr Marambii said the underlying reason for this growth was a 43 per cent rise in loans and advances to Sh10.6 billion during the first half compared with Sh7.4 billion last year.

He said the bank would continue pursuing a path of steady asset growth through diversification of business.

According to the bank’s financial statements released yesterday, the total non-interest income rose by 13.4 per cent to Sh1.1 billion from Sh990 million, while the total asset base increased by 10.99 per cent to Sh48.1 billion from Sh43.3 billion in June last year.

Government agencies

Government securities, which accounted for 49.52 per cent of the total assets, registered a 1.72 per cent growth.

National Bank was founded for the Government and its agencies. It provides banking services to several Government agencies including the Kenya Revenue Authority.

"This bank would not survive if it did business with the Government only," said Marambii.

 

 

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