BUSINESS

NBK in 217% Profit Growth as Recovery Gathers Momentum

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NBK profit 2024
During Q1, NBK successfully upgraded the Core Banking System to T24, marking a strategic move to enhance operational efficiency, security, and customer experience.
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National Bank of Kenya (NBK) has posted a pre-tax profit of Ksh535 million in its 2004 first quarter financial results, representing a 217% increase compared to Ksh169 million reported in a similar period last year.

The growth is attributed to increased operating income by Ksh611 million mainly driven by lending income from growth in the loan book and higher yields.

“We are delighted to report a strong performance in the first quarter of this year,” said NBK Managing Director, Mr George Odhiambo. “Our continued investment in innovative financial solutions has continued to expand our reach and accessibility, consequently growing our top line. We remain focused on customer-centricity and digital innovation to fully support and empower individuals and businesses to achieve their financial goals and aspirations.”

Mr Odhiambo said NBK’s continued growth demonstrated leadership in building industry expertise in key growth sectors, diversifying and differentiating its financial services and developing strategic partnerships with key enablers in the market.

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Key Highlights

  • Asset base rose to Ksh157 billion, 4% up year on year
  • Customer deposits closed at Ksh105 billion, 6% up year on year
  • Net operating income of Ksh3.4 billion, up 22%. Non-funded income contributed 29% of operating income.
  • Loan impairment charges for the period Ksh548 million, 35% up year on year
  • Profit after tax of Ksh539 million, up 362% year on year

During Q1, NBK successfully upgraded the Core Banking System to T24, marking a strategic move to enhance operational efficiency, security, and customer experience. The upgraded system has also helped optimise internal processes, enabling NBK to deliver services more efficiently and effectively.

Awards and recognition

In the period under review, NBK was honoured with various accolades, affirming its commitment to excellence and innovation in the banking industry. The Bank emerged 2nd in Tier Two Banks in Banking Customer Experience, according to the 2023 Banking Industry Customer Satisfaction Survey conducted by Kenya Bankers Association. During the Finnovex East Africa Awards, the Bank was recognized for its innovative spirit, taking home the Outstanding Contribution to Fintech Initiatives-2024 Award.

Outlook

NBK remains optimistic about the future. “We are thrilled to see the positive impact of our efforts in the 1st Quarter of 2024 reflected in our strategic partnerships, and sustainable financing initiatives,” Mr Odhiambo said. These milestones set the impetus for the rest of the year and underscore our commitment to driving positive change, fostering innovation, and delivering exceptional value to our customers and communities into the future.”

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Written by
BT Reporter -

editor [at] businesstoday.co.ke

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