NBK Posts KShs. 87M in Q3 2020 Net Profit.

NBK Posts KShs. 87M in Q3 2020 Net Profit.

Customer deposits grew to KShs.102.6billion, as loans and advances rise by KShs.5.5 billion

National Bank of Kenya (NBK) has posted KShs. 87million in profit after tax for the nine months ending September 2020. This represents a 77% decline over a similar period last year due to effects of the COVID-19 pandemic.

The bank recorded a profit before tax of KShs. 535million representing a 7% 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 have however been slowed down by effects of the COVID-19 pandemic,” said NBK Managing Director Paul Russo.

Non-funded income grew by 5% from the previous year, on increased focus on digital banking. Interest income stood at KShs. 7.2billion, a growth of 9% due to increased volumes in loans and advances as well as sustained recoveries. Comparatively, interest expense remained relatively flat at KShs. 2billion.

Total operating costs increased by 14%, 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% to KShs. 129.5billion from KShs.107billion, majorly from net loans and advances which were up 12% to KShs. 53billion. This was also supported by increased customers and deposits which grew by 24% to KShs.102billion. Total non-performing loans and advances stood at KShs. 23.3billion, a 15% drop from KShs. 27billion year on year.

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

“We remain cautiously optimistic about the future of the bank. We continue to invest in revamping our channels and delivering an unmatched experience to our customers,” Mr. Russo added.

 

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NBK Posts KShs. 87M in Q3 2020 Net Profit.