Retrenchment costs eat into National Bank’s pre-tax profit

Kenya: National Bank of Kenya has reported a 28 per cent drop in pre-tax profit for the year ended 2014 owing to high costs of paying off retrenched staff.

Figures released by the bank yesterday indicate that NBK spent more than Sh1.1 billion to compensate laid-off staff, a fact that affected the bank’s overall bottom line. The job cut is part of a raft of measures undertaken by the bank to revamp the bank and reclaim its position as one of the country’s top lenders.