National Bank of Kenya (NBK) has announced that it has recorded a profit after tax of Ksh. 828 million for the financial year ending December 31, 2022. This is a 27% reduction as compared to the previous period when the bank registered a Ksh. 1.1 billion.
The Bank reported an operating income growth of 13% to Ksh. 11.7 billion from Ksh. 10.2 billion recorded in the previous period. The revenue growth was contributed by both net interest income and non-funded income.
During the period under review, the Bank’s net interest income increased by 10% to Ksh. 9.1 billion, mainly contributed by higher lending. The non-funded income stream registered a 29% growth to Ksh. 2.6 billion, mainly driven by growth from new businesses such as bancassurance and trade finance.
“Despite a challenging operating environment characterized by slowdown in business activity in an election year, rising inflation, currency pressures and geopolitical risks that affected both the global and local economy, we delivered good results, demonstrating our continued strategic focus to deliver innovative and bespoke financial solutions to various customer segments,” said NBK Managing Director George Odhiambo.
Net loans and advances went up 6% to Ksh. 71 billion from additional lending to critical sectors of the economy such as agribusiness, building and construction, and manufacturing sectors.
During the period, total operating expenses increased to Ksh 8.6 billion, representing an 11% increase from the previous year. This was largely driven by increased investments in technology and strategic Bank projects.
Total assets stood at Ksh. 143 billion, driven by investment securities and customer deposits.
While reflecting on the 2023 outlook, the MD said: “we are in a strong position to continue supporting our customers as a reliable financial partner in order to achieve their aspirations. Our focus is to invest in and grow market-leading businesses as well as expand into new strategic areas to provide innovative and bespoke financial solutions to our customers”.