National Bank of Kenya (NBK) has posted Sh65million in profit after tax for the half year ending June 30, 2021.
During that period, NBK's customer deposits grew marginally to Sh99.7 billion, as loans and advances rose by Sh10 billion to Sh60 billion.
The profit represents a 307 per cent growth compared to a similar period last year, driven by increased income from loan interest, foreign exchange trading and lower loan loss provisions.
“This has been a strong first half that will ensure we help our customers reposition for the awaited economic recovery going into the second half of 2021. We believe the new phase of normalcy will unveil growth opportunities for our customers and the Bank,” said NBK Managing Director Paul Russo.
During the half year, net interest income grew by 21 per cent from the previous year to stand at Sh4.1 billion.
This was contributed by interest income which grew by 24 per cent toSh5.8 billion owing to increased volumes of loans and advances as well as sustained recoveries.
The half year was marked by a 30 per cent growth in interest paid to Sh1.7 billion on increased customer deposits, from transactions on the revamped digital channels.
Paul Russo. PHOTO/COURTESY
Total operating costs during the Half year remained relatively flat at Sh4.1 billion over a similar period in 2020 despute despite increased investments in enhanced cybersecurity measures and revamping of the core banking system.
On the balance sheet, NBK’s total assets increased by 12 per cent to Sh134 billion, driven by growth in net loans and advances, which were up 20 per cent to Shs60 billion.
NBK branch. PHOTO/COURTESY
This was also backed by relatively flat customer deposits at Sh99.7 billion due to increased inflows among NBK’s existing clients and new accounts in corporate and retail business units.
“Our capital and liquidity levels are secure enough to support our outlook for the rest of the year’s prospects for growth in our balance sheet, delivering an upturn in revenue growth and profits projected for 2021,” added Russo.