National Bank of Kenya (NBK) has made a major financial turnaround from making an after-tax loss of Sh3.3 billion in 2023 to posting a net profit of Sh1.06 billion in the 2024 fiscal year.

NBK says the significant revenue growth was driven by improved efficiency in its balance sheet optimization and digital transformation, a key pillar of the Kenyan bank’s strategy.

NBK MD George Odhiambo says the lender also adopted a new core banking system and enhanced its digital payments platform for better customer experience and operational efficiencies.

Odhiambo indicated that the Kenyan bank took bold steps managed to weather the tough macroeconomic environment in the country in 2024 to bounce back to profitability.

“This is highly attributed to the improved efficiency in our systems, diversifying revenue streams and continuous improvement in customer service and experience,” Odhiambo said.

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He added: “Looking ahead, we have set our sights on strengthening our relationship with our existing customer base and also enhancing product and service delivery to meet their ever-evolving needs.”

Key Financial highlights:

• Operating income grew by 12 per cent to Sh12.65 billion

• Non-funded income contributed 23 per cent of the total operating income.

• Net interest income grew by 24 per cent to Sh9.8 billion from Sh7.9 billion in 2023.

• Interest expenses grew 18 per cent to Sh6.4 billion on increased borrowings and growth in funding costs.

• Operating expenses fell by 22 per cent to Sh9.1 billion largely driven by one-off expenses in 2023 and cost optimization measures implemented in 2024.

• The credit impairment charge reduced by 21 per cent due to effective risk management and resilience in a period of high interest rates.

• Customer deposits declined to Sh98 billion from Sh118 billion in 2023.

• Borrowing increased from Sh15 billion in 2023 to Sh23 billion in 2024.

• Net loans and advances to customers declined from Sh79 billion to Sh75 billion in 2024.

Looking into the future, NBK says it will leverage technology, operational efficiency, and customer-centric service delivery and innovative solutions to sustain its growth trajectory.