National Bank of Kenya (NBK) has posted Ksh765 million in profit after tax for the half year ending 30th June, 2021, representing a 307% growth compared to a similar period last year. This was driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.
“This has been a strong first half that will ensure we help our customers reposition for the awaited economic recovery going into the second half of 2021,” said NBK Managing Director, Mr Paul Russo. “We believe the new phase of normalcy will unveil growth opportunities for our customers and the bank.”
During the half-year, net interest income grew 21% from the previous year to stand at Ksh4.1billion. This was contributed by interest income which grew by 24% to Ksh5.8 billion due to increased volumes of loans and advances as well as sustained recoveries. The half year was marked by a 30% growth in interest paid to Ksh1.7 billion on increased customer deposits, from transactions on the revamped digital channels.
Total operating costs during the half year remained relatively flat at Ksh4.1 billion over a similar period in 2020. This was despite increased investments in enhanced cybersecurity measures and revamp of the core banking system.
On the balance sheet side, total assets grew by 12% to Ksh134 billion, driven by growth in net loans and advances, which were up 20% to Ksh60 billion. This was also supported by relatively flat customer deposits at Ksh99.7 billion sustained at the high levels due to increased inflows among existing clients and new accounts in corporate and retail (including National Amanah – the bank’s Islamic banking business) business units of the bank.
“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,” said Mr Russo.