No Turning Back: NBK Q3 2021 Net Profit Up 1126PC To KSh1.1 Billion

National Bank of Kenya (NBK) posted Ksh1.1 billion in profit after tax for the nine months ending September 2021, representing a 1126 percent increase from Ksh87 million in similar period last year.

This was driven by increased income from loan interest and foreign exchange trading coupled with lower loan loss provisions and benefit from change in corporation tax rate to 30 percent.

“In a period of unprecedented challenges to our business, the banking sector and the economy at large, I am extremely proud of the excellent results that we delivered for Q3. I am particularly happy because of the actions we have taken to support our stakeholders during what has been a rapidly evolving business environment. Despite the ongoing economic impact of COVID-19, our operating income increased 14.4 percent to close Q3 at Ksh7.6 billion. The low levels of credit provisions also resulted in an increase in profit after tax of 1126 percnet,” said NBK Managing Director Paul Russo.

Mr Russo further stated: “This achievement is also attributed to the great teamwork and our strong foundation for long-term business strategy that ensured we remained resilient in the face of a difficult period.”

During the year, net interest income grew by 17 percent from the previous year to stand at Ksh6.1 billion. This was contributed by interest income, which grew by 23 percent to Ksh8.9 billion due to increased volumes of loans and advances as well as improved level of recoveries. The third quarter of the year was marked by a 39 percent growth in interest paid to Ksh2.8 billion on increased customer deposits, from transactions on the revamped digital channels.

Total operating costs excluding provisions are at Ksh6 billion, a slight increase over a similar period in 2020 driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as Internet and agency banking platforms.

On the balance sheet side, total assets grew by 13 percent to Ksh146 billion, majorly from net loans and advances, which were up by Ksh12 billion to Ksh65 billion. This was supported by a growth of 12 percent customer deposits to Ksh115 billion due to increased inflows among existing and new accounts in corporate and retail (including National Amanah – The Bank’s Islamic Banking business) franchises of the Bank.

The Bank continues to maintain a high liquidity profile of 49.6 percent placing it in a strong position to continue supporting its customers during the ongoing economic challenges caused by COVID-19.

“Going into the future and more so to enhance business resilience, we will continue to provide innovative value-added and cost-effective financial solutions to our customers, striving to exceed their expectations across our network. This should be achieved against a background of a stabilizing macro-economic environment and steady economic growth in the country. I am optimistic that we have established a solid foundation from which we will execute our strategic priorities that will get us closer to our customers wherever they are and enable us to serve them better,” Mr Russo added.

Read: NBK In Bullish Mood As Half Year Profit Shoots To Sh765M

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