National Bank of Kenya (NBK) a subsidiary of KCB Group says it posted a profit after tax of Ksh 177 million for the year ending December 31, 2020, representing 167% growth from the previous year.
This was driven by an increase in loan volumes and lower operating costs, even as the Bank battled the impact of the COVID-19 pandemic.
“Even though the pandemic disrupted our plans, slowed our recovery journey, and impacted the business and our people, we still managed to deliver some growth. This is an indication that our fundamentals are solid and remained resilient to the shock,” said NBK’s Managing Director Paul Russo.
According to the financials unveiled on Wednesday, interest income grew by 8% to stand at KShs. 9.7billion, largely due to increased volumes in loans. The interest expense remained relatively flat at KShs. 2.7billion.
Total operating costs decreased by 6%, because of reduced loan provisioning to accommodate the heightened risks due to the effects of the pandemic. This period also saw the Bank continue to drive cost management initiatives.
The Bank further strengthened its balance sheet, with assets growing by 13% to KShs. 126.7billion from KShs.112billion; majorly from net loans and advances which were up 21% to KShs. 55.5billion. This was also supported by a 14% growth in customer deposits to KShs. 99billion from increased flows from existing and new clients in both retail and corporate businesses.
National Bank posted a profit after tax of Kes. 177M for the year ending December 31, 2020, representing 167% growth from the previous year #NBKFY2020 pic.twitter.com/qw9bM3wkvX
— National Bank 🇰🇪 (@National_Bank) March 17, 2021
