National Bank’s profit hits Sh3.2 billion in third quarter

 

National Bank of Kenya CEO Munir Sheikh (PHOTO: COURTESY)

NAIROBI, KENYA: National Bank has announced a profit before tax (PBT) of Sh.3.22 Billion in the nine months ending September 2015, in what will pass as one of the best performance by the bank in its 48 years history.  

This performance is a 79.5 percent increase in PBT- compared to a similar period in 2014 when Sh 1.8 Billion was reported. The Bank has been undergoing massive restructuring with an aim to transform into a top 5 tier1 lender in Kenya. 

In 2013 under the current Managing Director Munir Sheikh, it reported Sh 1.8B trading profits which rose to Sh2.43B in 2014 and now has jumped to Sh3.22B for Q3 2015. 

Mr. Munir said the remarkable achievements shows the effort and dedication put in by the Bank’s Board, management and staff.  “Our performance over the years since 2013 is testimony that structures that have been put in place to ensure that business runs efficiently and meets the international banking standards - are delivering excellent results. We expect this to go on as we implement the remaining projects in the transformation plan,” he said. 

The bank’s disruptive transformation has seen it diversify its revenue streams, roll out  multiple delivery channels  such as  NatMobile (mobile banking), NatConnect  (internet banking) and the National Bank Agency and launch new products for its customer segments which has boosted both loyalty and growth of the customer base. NBK has increased service distribution by 25 new branches to give it a total of 80 in Kenya. 

In the nine months period, total operating income rose by 21 percent to Sh 8.8B. The bank also excelled in cost reduction, cutting an impressive 4 percent on operating expenses for the nine months.