The National Bank of Kenya (NBK) has followed its parent company KCB Group into posting remarkable earnings at the half year stage, extending earnings growth for the third quarter in a row.
NBK’s net profit for the six months to June stands at Kes717.6 million representing a 307 per cent turnaround of fortunes from a Kes381.3 million losses at a similar period last year.
“This has been a strong first half that will ensure we help our customers reposition for the awaited economic recovery. We believe the new phase of normalcy will unveil growth opportunities for our customers and the bank,” said NBK Managing Director Paul Russo.
National Bank’s growth is attributable to a rebound in the lender’s interest income as well as hold in costs.
In the period, NBK’s operating income improved to Kes5.1 billion from Kes4.3 billion while non-interest costs closed flat at Kes4.1 billion in the reporting period.
NBK has shed its loan-loss provision costs to Kes297.4 million from a higher Kes413.7 million reflecting improvement in the country’s business environment as customers and businesses recover from Covid-19 economic fallout.
The lenders gross non per forming loans also come down to Kes27.4 billion from a higher Kes28.7 billion while loans advanced surged by 12 per cent to Kes134 billion.
“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,” noted Mr Russo.
The KCB Group subsidiary now has an asset base of Kes133.6 billion with Kes60.4 billion in net customer loans and Kes99.9 billion in customer deposits.