Published on May 28, 2024 by Agencies for Kenya Online News
Last Updated on 2 years by Agencies for Kenya Online News
National Bank of Kenya (NBK) has posted a pre-tax profit of KES 535 million in its Q1 financial results, representing a 217% increase compared to KES 169 million reported in a similar period last year.
The growth is attributed to increased operating income by KES 611 million mainly driven by lending income from growth in the loan book and higher yields.
Key Highlights
- Asset base rose to KES 157 billion, 4 per cent up year on year
- Customer deposits closed at KES 105 billion, 6 per cent up year on year
- Net operating income of KES 3.4 billion, up 22%. Non-funded income contributed 29 % of operating income.
- Loan impairment charges for the period KES 548 million, 35 per cent up year on year
- Profit after tax of KES 539 million, up 362 per cent year on year
Commenting on the results, NBK Managing Director, George Odhiambo remarked “we are delighted to report a strong performance in the first quarter of this year. Our continued investment in innovative financial solutions has continued to expand our reach and accessibility, consequently growing our top line. We remain focused on customer-centricity and digital innovation to fully support and empower individuals and businesses to achieve their financial goals and aspirations.”
Odhiambo added, “Our continued growth is also attributed to demonstrating leadership in building industry expertise in key growth sectors, diversifying and differentiating our financial services and developing strategic partnerships with key enablers in the market.”
Business Highlights
During Q1, NBK successfully upgraded the Core Banking System to T24 marking a strategic move to enhance operational efficiency, security, and customer experience. The upgraded system has also helped optimizing internal processes, enabling NBK to deliver services more efficiently and effectively.
Awards and recognition
In the period under review, NBK has been honored with various accolades, affirming its commitment to excellence and innovation in the banking industry. The Bank emerged 2nd in Tier Two Banks in Banking Customer Experience, according to the 2023 Banking Industry Customer Satisfaction Survey conducted by Kenya Bankers Association. During the Finnovex East Africa Awards, the Bank was recognized for its innovative spirit, taking home the Outstanding Contribution to Fintech Initiatives-2024 Award.
Outlook
“As NBK we remain optimistic about our future. We are thrilled to see the positive impact of our efforts in the 1st Quarter of 2024 reflected in our strategic partnerships, and sustainable financing initiatives. These milestones set the impetus for the rest of the year and underscore our commitment to driving positive change, fostering innovation, and delivering exceptional value to our customers and communities into the future. Our digital transformation journey is far from over, and we will continue to innovate and adapt to meet the evolving needs of our customers.,” added George Odhiambo
