National Bank of Kenya (NBK) has announced that it has a registered Ksh. 729 million profit after tax in the half year of 2022. This is a slight dip from the Ksh. 765 million the company posted over a similar period in 2021.

The bank reported growth in total operating income at 13% but also operating costs rose by 11% on back of investments in strategic projects to enhance operational excellence and customer experience.

NBK Acting Managing Director Peter Kioko said that there was steady income growth, which the bank expects to increase in future periods when benefits from its current digitization and operational investments are realized.

“Our loan loss provision increased, highlighting the challenging lending environment of a tough economic period. Despite these challenges, the bank’s loan book grew to KShs. 69 billion and customer deposits grew to KShs. 112 billion. We maintained a strong balance sheet; total assets grew by 4% to KShs. 139 billion,” added Mr. Kioko.

During the period, net interest income grew by 18% from the previous year to Ksh. 4.8 billion. This was contributed by interest income, which grew by 17% to Ksh. 6.8 billion owing to increased volumes in loans and advances as well as improved level of debt recoveries. During the same period, interest expense grew to Ksh. 2 billion on increased funding requirements of the bank.

Looking ahead, Mr. Kioko said: “We are on a steady growth trajectory and anticipate continued growth by supporting our clients and finding opportunities within the current environment. The Bank has a strong capital and liquidity base to support the growth of the business and especially through our digital offering. We have, therefore, embarked on a calculated strategy towards ensuring that we provide customer-centric and timely solutions to our customer segments.”

National Bank is a subsidiary of KCB Group Plc and a fully-fledged Commercial Bank established to provide Kenyans access to finance. The Bank has a growing network of 85 branch outlets across the country, over 1500 ATMs, and electronic channels of Mobile and Internet Banking.