National Bank of Kenya (NBK) has reported a pre-tax profit of Sh535 million for the first quarter of 2024, marking a significant 217 per cent increase from the Sh169 million recorded in the same period last year.

This impressive growth is largely attributed to a rise in operating income by Sh611 million, driven predominantly by increased lending income from an expanding loan book and higher yields.

The bank's asset base has grown to Sh157 billion, reflecting a 4 per cent year-on-year increase.

Customer deposits have also seen a substantial rise, closing at Sh105 billion, which is a 6 per cent increase from the previous year.

The net operating income reached Sh3.4 billion, up by 22 per cent, with non-funded income contributing 29 per cent of the total operating income.

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However, the bank also experienced a 35 per cent increase in loan impairment charges, amounting to Sh548 million for the period.

Despite these charges, the profit after tax soared to Sh539 million, a remarkable 362 per cent rise year-on-year.

George Odhiambo, the Managing Director of NBK, expressed his satisfaction with the bank's performance, stating, "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 further attributed the bank's continued growth to its leadership in industry expertise, diversification of financial services, and strategic partnerships.

One of the notable achievements in Q1 was the successful upgrade of NBK's Core Banking System to T24. This strategic move aims to enhance operational efficiency, security, and customer experience. The upgraded system has optimized internal processes, enabling the bank to deliver services more efficiently and effectively.

Looking ahead, George Odhiambo conveyed optimism for the bank's future, stating, “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.”

NBK's robust performance in the first quarter of 2024 positions it well for sustained growth and success throughout the year, reaffirming its commitment to excellence, innovation, and customer satisfaction.