National Bank records Sh106 mn profit in 1Q19May 30, 2019
NAIROBI, Kenya, May 30 – National Bank of Kenya has today announced an after tax profit of Sh106 million for the period ending March 31, 2019.
This represents 138% increase in profitability from the loss position in quarter one 2018 which was occasioned by one-off exceptional item. The profit is mainly attributed to growth in operating income from.
Customer deposits increased to Sh89 billion compared to Sh86 billion in quarter one 2018 as the banks strategy of driving business growth through enhanced mobile offering, diaspora and MSME continued to bear fruit. This supported an improved liquidity position which was 40.4% compared to 29.9% in 2018.
The Bank won the 2nd Runners up Most Customer Centric Banks in Kenya during the 14th annual banking awards by Think Business. National Bank has been on an upward trajectory on Service excellence. The bank has consistently been recognized and won Customer Service Excellence Awards since 2015 by different sectoral bodies such as Institute of Customer Excellence – Kenya (ICX-K), Kenya Bankers Association and Think Business.
Net loans & advances reduced to Sh45 billion compared to Sh51 billion the previous year over the same period on reduced volumes of new loans issued & collections made on existing loans. The slowdown is based on the capital limitation.
Operating income for the period was Sh2.2 billion, a 26% increase from Sh1.7 billion recorded in the same period the previous year mainly due to improved funding mix, recoveries from NPL book and interest earning assets.
“This is in line with our strategy of improving our net interest margin by lowering the cost of funding and accelerating recoveries and remediation of the NPL book,” said National Bank Managing Director and CEO Wilfred Musau.
“We continue to deliver on our promise to our customers by ensuring that we offer them excellent services at their convenience. This is evidenced by the increased customer deposits, awards and recognitions that the bank is receiving,” Added Musau.
Operating expenses reduced marginally by 3% year on year to Sh1.712 billion from Sh1.764 billion.