NBK extends profitable run

NBK extends profitable run

The National Bank of Kenya (NBK) has maintained its recent profitable run booking positive earnings for the third straight quarter to June 2020.

NBK has returned a Ksh.717.6 million net profit in the six months period from a loss of Ksh.381.3 million at the same stage last year, signalling the end of a rough patch for the bank.

The extended profitability has been anchored on improved operating income alongside a costs hold.

During the half year period, NBK’s total operating income rose by 18.6 per cent to Ksh.5.1 billion with key increments to both interest and non-interest income.

The lender’s net interest income peaked at Ksh.4.1 billion from a lower Ksh.3.3 billion while non-interest income rose to Ksh.1.1 billion from Ksh.959.4 million.

Meanwhile, NBK has retained its non-interest based costs at Ksh.4.1 billion after cutting its loan-loss provisions to Ksh.297.4 million from a higher Ksh.413.7 million.

The attrition in provisions has been accompanied by a deceleration in the lender’s gross non-performing loans which eased to Ksh.27.4 billion from a higher Ksh.28.7 billion.

NBK Managing Director Paul Russo sees even more greater growth for the KCB owned bank for the rest of the year as NBK seemingly ‘gets used’ to being a profitable outfit.

“Our capital and liquidity levels are secure enough to support our outlook for the rest of the year’s prospects for growth in our balance sheet, delivering an upturn in revenue growth and profits projected for 2021,” he said.

NBK now has an asset base of Ksh.133.6 billion that includes Ksh.60.4 billion in net loans and advances to customers. Its customer deposits meanwhile sit at Ksh.99.9 billion.

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