National Bank of Kenya has reported a Ksh. 177 Million profit after tax for the year ended December 31, 2020. This represents a 167% growth from the previous year when the bank reported a loss.
This rise in profitability was driven by driven by an increase in loan volumes and lower operating costs. interest income grew by 8% to stand at KShs. 9.7billion, largely due to increased volumes in loans. The interest expense remained relatively flat at KShs. 2.7billion.
At the same time, total operating costs decreased by 6% due to reduced loan provisioning to accommodate the heightened risks due to effects of the pandemic. This period also saw the Bank continue to drive cost management initiatives.
The Bank further strengthened its balance sheet, with assets growing by 13% to KShs. 126.7billion from KShs.112 billion; majorly from net loans and advances which were up 21% to KShs. 55.5billion. This was also supported by a 14% growth in customer deposits to KShs. 99billion from increased flows from existing and new clients in both retail and corporate businesses.
NBK’s Managing Director Paul Russo, had this to say, “Even though the pandemic disrupted our plans, slowed our recovery journey, and impacted the business and our people, we still managed to deliver some growth. This is an indication that our fundamentals are solid and remained resilient to the shock. With the ongoing Covid-19 vaccination and gradual reopening of the economy, we are optimistic about our fortunes this year. We expect better performance. Our focus remains supporting our customers through these times and ensuring their safety and that of our staff.”