The National Bank of Kenya (NBK) has achieved remarkable financial success, reporting a Sh1.2 billion profit after tax for the third quarter of 2024.

This performance represents an impressive 142 per cent growth compared to the same period last year, driven by strategic revenue diversification, cost efficiency, and robust risk management.

NBK Managing Director George Odhiambo hailed the bank's performance as a reflection of its resilience amidst a challenging economic environment.

“We are proud of the upward trend in our performance, which underscores the success of our strategic initiatives focused on operational efficiency, diversified income generation, and robust risk management, Odhiambo remarked.

Our strong financial performance reflects our ability to adapt and thrive in a challenging macroeconomic environment."

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Key highlights of the bank's third-quarter performance reveal significant achievements:

Total Operating Income: The bank's operating income rose by 16 per cent to Sh9.8 billion, with non-funded income contributing 26 per cent, showcasing NBK's ability to tap into varied revenue streams.

Net Interest Income: A 22 per cent year-on-year surge underscored improved customer engagement and robust lending activities.

Cost Efficiency: Operating expenses fell by 30 per cent compared to Q3 2023, owinLoan Impairments: Provisions for loan impairments declined by 6 per cent, reflecting better credit risk management.g to reduced one-off costs from the previous year and continued optimisation efforts.

Loan Impairments: Provisions for loan impairments declined by 6 per cent, reflecting better credit risk management.

Customer Deposits: While deposits saw a 12 per cent dip, core lending activities remained stable, highlighting steady loan and advance levels.

Odhiambo also highlighted NBK's customer-focused strategy, stating, “By leveraging strategic partnerships, we have introduced innovative products and services tailored to our customers’ evolving needs, reinforcing our commitment to delivering value to stakeholders.

"As we move forward, we remain dedicated to supporting our customers’ growth while exploring new opportunities to strengthen our position in the market.”

Shareholders’ funds also saw a 13 per cent increase, bolstered by enhanced profitability, further reinforcing NBK’s financial stability.

Odhiambo further noted the bank's optimism about the broader macroeconomic outlook and emphasised NBK’s commitment to sustainable growth and addressing climate challenges.

“Looking ahead, we remain optimistic about the overall macroeconomic outlook. At NBK, we are dedicated to leveraging strategic partnerships to empower businesses and individual customers to achieve their growth priorities," he affirmed.

"A key focus area is expanding our sustainability agenda by offering innovative green products and services, aligning with global efforts to address climate change.

According to Odhiambo, By fostering environmentally responsible growth, NBK aims to support their customers in transitioning to sustainable practices while contributing to a more resilient economy.

As a subsidiary of KCB Group PLC, NBK continues to expand its financial services across the country through its extensive branch network and digital platforms.

With its focus on operational efficiency and customer-centric strategies, the bank is positioning itself as a key player in Kenya's financial sector.