National Bank of Kenya has today announced an after-tax profit of Ksh 150 million for the period ending June 30, 2019, representing a 153% increase over 2018 earnings.
The Bank’s Managing Director and Chief Executive Officer Wilfred Musau said the rise in profitability was attributed to growth in operating income during the period under review.
Operating income for the period was Ksh 3.9 billion, a 6% increase from Ksh 3.6 billion over the same period in the previous year mainly due to an increase in interest from lending,investments and a reduction in interest expense.
Total expenses, however, increased by 6% year on year mainly driven by increased loan loss provisions and operating expenses.
Customer deposits, declined to Ksh 91 billion as at June 30, 2019 compared to Ksh 96 billion over the same period in 2018. Net loans & advances declined by Ksh 480 million over the same period on account of reduced volumes in new loans issued and collections made on existing loans.
Total assets grew marginally by 1.1 per cent to Ksh 114.59 billion compared to Ksh 113.34 billion in the same period last year.
“The bank achieved this lever of growth against the backdrop of a challenging environment, both externally and internally. The bank remains steadfast in its mandate for 2019,” Mr. Musau said.