NBK’s 2018 pre-tax profit drops by 42% to Sh456m

National Bank of Kenya (NBK) has announced a pre-tax profit of Ksh 456 million before exceptional item for the period ending 31 December 2018, against a backdrop of difficult operating environment within the year as well as reduced lending due to capital constraints.

This represents a 42% decrease in profitability over the comparable period in 2017 at Ksh 785 million. During the year, the bank incurred a one-off exceptional cost relating to voluntary early retirement cost of Ksh 541 million.  

 “Our earnings for the period ended 31 December 2018 was affected by capital constrains and the loan impairment charges. We also had a one off restructuring cost resulting from the voluntary early retirement program as part of wider business alignment. We are however optimistic of an improved performance in 2019. We have implemented various initiatives to grow the business, improve efficiencies, reduce non-performing loans and contain costs,” said Wilfred Musau, National Bank’s Managing Director & CEO.

Total operating income for the period was Ksh 8.1 billion, a 12% drop from Ksh 9.2 billion recorded in the same period 2017 mainly due reduction in lending rates for loans and advances, challenging operating environment especially in first quarter of 2018 and reduced lending volumes due to capital constraints.

 Overall, total operating expenses declined by 10% to Ksh 7.6 billion from Ksh 8.4 billion over the same period in 2017 as the bank continued to realise benefits from implementation of cost management strategies and debt management.

 Customer deposits increased by 5% from Ksh 94.3 billion as at 31 December 2017 to Ksh 98.9 billion as at 31 December 2018 due to new business in public sector, micro-small and medium enterprises, agribusiness sectors and Diaspora business and successful deposit mobilization campaign in the year.

 Net loans & advances reduced by 9% to Ksh 47.8 billion as at 31 December 2018 from Ksh 52.4 billion the previous period as a result of one-off impact of IFRS 9 adoption and reduced loan volumes as the bank operated within the compliance capital ratios.

The principal shareholders have provided confirmation to the board of directors of their continued efforts to execute a comprehensive and long-term capital solution for the Bank. The Board and management continue to implement other internal initiatives to restore capital involving disposal of non-core assets, investment in new products and platforms to boost profitability, cost reduction initiatives and accelerated recovery of the non-performing book

Latest

Whipped and Stripped! A Survivor’s Tale of Harrowing Brutality in a Mental Hospital

The lack of a long-term vision and inadequate resourcing of mental hospital infrastructures continues to take a toll on Kenya’s mentally ill patients.

Dubai Agency Picks Top Influencer Marketers to Lead Kenyan Operation

This strategic move is in line with indaHash vision to cement its presence in Africa, following its impactful footprint in South Africa since 2017 and successful collaborations with clients like the South African Tourism Board.

SportPesa to reward Customers in Cash-Filled Festive Promotion

Running from December 4th to 25th, the SportPesa campaign promises daily excitement with six lucky winners expected to walk away with Ksh5,000 daily.

Captain William Ruto: President’s Namesake With a Decorated Career

Captain William Kipkemboi Ruto is officially known by the name William Ruto, which also happens to be President William Samoei Ruto’s official name.

Follow Us

Newsletter

Don't miss

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.
BUSINESS TODAY
BUSINESS TODAYhttps://businesstoday.co.ke
editor [at] businesstoday.co.ke

Whipped and Stripped! A Survivor’s Tale of Harrowing Brutality in a Mental Hospital

The lack of a long-term vision and inadequate resourcing of mental hospital infrastructures continues to take a toll on Kenya’s mentally ill patients.

Dubai Agency Picks Top Influencer Marketers to Lead Kenyan Operation

This strategic move is in line with indaHash vision to cement its presence in Africa, following its impactful footprint in South Africa since 2017 and successful collaborations with clients like the South African Tourism Board.

SportPesa to reward Customers in Cash-Filled Festive Promotion

Running from December 4th to 25th, the SportPesa campaign promises daily excitement with six lucky winners expected to walk away with Ksh5,000 daily.

3 COMMENTS

  1. […] !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.agent='dvpixelcaffeinewordpress';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,'script','https://connect.facebook.net/en_US/fbevents.js&#039;); var aepc_pixel = {"pixel_id":"1013138498757807","user":[],"enable_advanced_events":"yes","fire_delay":"0"},aepc_pixel_args = [],aepc_extend_args = function( args ) {if ( typeof args === 'undefined' ) {args = {};}for(var key in aepc_pixel_args) args[key] = aepc_pixel_args[key];return args;};// Extend args if ( 'yes' === aepc_pixel.enable_advanced_events ) {aepc_pixel_args.userAgent = navigator.userAgent;aepc_pixel_args.language = navigator.language;if ( document.referrer.indexOf( document.domain ) < 0 ) {aepc_pixel_args.referrer = document.referrer;}}fbq('init', aepc_pixel.pixel_id, aepc_pixel.user);setTimeout( function() {fbq('track', "PageView", aepc_pixel_args);}, aepc_pixel.fire_delay * 1000 ); Source link […]

LEAVE A REPLY

Please enter your comment!
Please enter your name here