× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

NBK profit declines to Sh87 million

By Fredrick Obura | November 11th 2020

National Bank of Kenya (NBK) has posted Sh87million in profit after tax for the nine months ending September 2020, a 77 per cent decline over a similar period last year due to the effects of the COVID-19 pandemic.

The bank recorded a profit before tax of Sh535million representing a 7 per cent increase over a similar period in 2019.

The corporate and retail franchises of the Bank remained resilient, amid a subdued economy and reduced activity across sectors, due to the crisis.  

“These results demonstrate the Bank’s resilience, in the face of a very challenging operating environment. They have been buoyed by ongoing efforts to turnaround this institution that has however been slowed down by effects of the COVID-19 pandemic,” said NBK Managing Director Paul Russo.

The bank said in a statement that its non-funded income grew by 5 per cent from the previous year, on the increased focus on digital banking. Interest income stood at Sh 7.2billion, a growth of 9 per cent due to increased volumes in loans and advances as well as sustained recoveries. Comparatively, interest expense remained relatively flat at Sh2billion.

Total operating costs increased by 14 per cent, largely driven by increased provisioning to cover for higher credit risks due to the pandemic in a period that also saw the Bank continue to drive cost management initiatives.

On the balance sheet side, total assets grew by 21 per cent to Sh129.5billion from Sh107billion, majorly from net loans and advances which were up 12 per cent to Sh 53billion.

It said this was also supported by increased customers and deposits which grew by 24 per cent to Sh102billion. Total non-performing loans and advances stood at Sh23.3billion, a 15 per cent drop from Sh27billion year on year.

The Bank recorded improvements in key ratios such as the capital position. The liquidity ratio was at 47.3 per cent, compared to 35.7 per cent in 2019.

“We remain cautiously optimistic about the future of the bank. We continue to invest in revamping our channels,” Russo added.

Covid 19 Time Series


Share this story
KCB Group profit drops to Sh10.9 billion
The lender’s after-tax profits for the nine months ending September 2020 stood at Sh10.9billion
Dog walking becomes the newest hustle in town
Dog walking is now a status symbol. Owning a pet is cool. I nowadays meet lots of Kenyans and foreigners walking their dogs and some running.