The National Bank of Kenya (NBK) has posted Sh155million in profit after tax for the first quarter of 2020 ending March, representing a 134 per cent increase from a similar period last year.
The performance from Sh66million previous year was driven by a growth in the loan book and cost management initiatives.
“We have made significant gains in turning around the business. Our recovery momentum has however been slowed down by the disruption of global economies by the COVID-19 pandemic, but we are continually innovating to mitigate its impact on the business,” Managing Director, Paul Russo said..
The Bank’s total operating income for the quarter grew by 6.7 per cent to Sh2.3billion, driven by increased interest income and fees and commissions.
Operating costs remained relatively flat on cost management, absorbing further investments in new branches, digital channels and systems for operational efficiency.
During the quarter, the Bank’s balance sheet strengthened, to stand at Sh113.8billion. Customer deposits grew to Sh 92billion, compared to Sh 89.5billion in first quarter of last year. Loans and advances also increased by Sh1.9billion to Sh47.8billion, with the boost in operations from the Sh5billion capital injection from KCB Group Plc.
Following the pandemic, NBK has taken measures to cushion customers from its negative impacts. 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.