National Bank of Kenya (NBK) has announced that it has recorded posted Ksh. 117 million in profit after tax for the first quarter of 2023 ending March.

The Bank recorded growth in non-funded income which registered a 60% growth to Ksh. 884 million compared to Ksh. 551 million over the same period in 2022. This was driven mainly by better performance in FX income, which registered an increase of 115%.

Overall revenue increased by 1% for the quarter, as the growth in non-funded income was offset by a 14% reduction in net interest income, because of the challenging macro- economic environment.

The Bank’s balance sheet registered a Ksh. 11.1 billion growth, driven by growth in both loan advances growth and customer deposits. Customer loans and advances grew by Ksh. 7.2 billion to Ksh. 75 billion which represents an 11% growth. Customer deposits rose by 1.2% to Ksh. 100 billion during the period under review.

Total operating expenses increased to Ksh. 2.2 billion, a 11% jump largely driven by increased investments in strategic Bank projects to enhance operational excellence and customer experience.

NBK Managing Director George Odhiambo noted that Bank is fully committed to delivering on its key agenda which includes supporting its clients to fully unlock their financial potential through digitization and innovative solutions. “The Bank’s foundation remains solid, reinforced by strong customer obsession and a highly liquid and well capitalized balance sheet that provides a platform for sustainable growth. We shall continue to deliver value and find opportunities that support inclusive long-term growth,” he said.

During the period, the Bank received an injection of additional Tier II Capital from the parent KCB Group PLC. This has ensured that the Bank is capitalized with sufficient capital buffers in line with minimum regulatory requirements.

National Bank is a subsidiary of KCB Group Plc and has anetwork of 76 branch outlets across the country, ATMs, and electronic channels of Mobile and Internet Banking. National Bank participates in Corporate Banking, Business Banking, Retail Banking, and Islamic Banking.