The National Bank of Kenya (NBK) has recorded an outstanding growth in financial performance, posting a Ksh1.2 billion profit after tax for the third quarter ending 3oth September, 2024. This represents an impressive 142% increase in net profit, compared to the same period in 2023.
Growth was driven by prudent cost management, enhanced operational efficiency, and strategic revenue stream diversification. NBK Managing Director George Odhiambo said the strong financial performance reflects the bank’s ability to adapt to the current hard economic times. “We are proud of the upward trend in our performance, which underscores the success of our strategic initiatives focused on operational efficiency, diversified income generation, and robust risk management,” Mr Odhiambo said.
He said by leveraging strategic partnerships, National bank of Kenya has introduced innovative products and services tailored to customers’ evolving needs, reinforcing its commitment to delivering value to stakeholders. “As we move forward, we remain dedicated to supporting our customers’ growth while exploring new opportunities to strengthen our position in the market,” Mr Odhiambo added.
Key Performance Highlights
Total operating income increased by 16% to Ksh9.8 billion, with non-funded income contributing 26% of the total operating income, demonstrating the Bank’s success in diversifying its revenue streams. Net interest income grew by a robust 22% year-on-year, supported by increased lending activities and strong customer engagement On cost efficiency, total operating expenses declined by 30% compared to Q3 2023 optimisation, largely due to significant one-off expenses in the previous financial year that did not recur in the current year and successes registered in ongoing cost optimisation initiatives.
Loan impairments provisions for loan impairments were reduced by 6%, largely due to a reduction in the cost of risk compared to the previous financial year.
Customer deposits declined by 12%, while loans and advances remained steady year- on- year, indicating stability in the bank’s core lending activities. Shareholders’ funds increased by 13%, driven by improved profitability, reinforcing NBK’s financial resilience.
Outlook
NBK management remains optimistic about the overall macroeconomic outlook. A key focus area is expanding our sustainability agenda by offering innovative green products and services, aligning with global efforts to address climate change.
“By fostering environmentally responsible growth, we aim to support our customers in transitioning to sustainable practices while contributing to a more resilient economy, ” said Mr Odhiambo.
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