National Bank announces best results in 48 years as profits hit Sh3.2b
By Standard Reporter | November 28th 2015
National Bank of Kenya (NBK) has announced a profit before tax of Sh3.22 billion in nine months ending September 2015, in what will pass as one of the best performances in the bank’s 48 years history.
This represents a 79.5 per cent increase compared to a similar period last year when the bank posted Sh1.8 billion. Presently one of fastest growing lenders in Kenya, National Bank has undergone massive restructuring to transform into a top 5 tier lender.
NBK performance has improved each year since Managing Director and CEO Munir Sheikh Ahmed embarked on a restructuring plan. In 2013 the bank reported Sh1.8 billion trading profit which rose to Sh2.43 billion in 2014 and now has jumped to Sh3.22 billion for the third quarter of 2015.
Mr Munir said the remarkable achievement shows the effort and dedication put in by the bank’s board, management and staff, has paid off.
“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 transformation has seen it diversify revenue streams, roll out multiple delivery channels such as NatMobile (mobile banking), NatConnect (internet banking) and the National Bank Agency and new products for customer segments. NBK has increased service distribution by 25 new branches to give it a total of 80.
Total operating income rose by 21 per cent to Sh8.8 billion, and cut its operating expenses by 4 per cent to Sh5 billion. NBK loans advances went up 28 per cent to Sh73.6 billion, from Sh57.6 billion in the same period last year with customer deposits standing at Sh90.8 billion.
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