NBK Managing Director Paul Russo National Bank of Kenya (NBK) has posted Sh177 million in profit after tax for the year ending December 31, 2020.
This represents a 167 per cent growth from the previous year, driven by an increase in loan volumes and lower operating costs, even as the Bank battled the impact of the COVID-19 pandemic.
The Bank’s corporate and retail franchises remained resilient in the subdued economy with reduced activity across sectors. During the period, NBK rolled out a raft of interventions to cushion customers from the effects of the pandemic for the continuity of their businesses and a reprieve from the financial strain. The Bank restructured loans to the tune of over Sh7 billion and waived fees on digital channels.
“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 per cent to stand at Sh 9.7billion, largely due to increased volumes in loans. The interest expense remained relatively flat at Sh2.7billion.
Total operating costs decreased by 6 per cent, 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. Read More
The Bank further strengthened its balance sheet, with assets growing by 13 per cent to Sh126.7billion from Sh112billion; majorly from net loans and advances which were up 21 per cent to Sh55.5billion. This was also supported by a 14 per cent growth in customer deposits to Sh99billion from increased flows from existing and new clients in both retail and corporate businesses.
“With the ongoing Covid-19 vaccination and gradual reopening of the economy, we are optimistic about our fortunes this year. We expect better performance. Our focus remains supporting our customers through these times and ensuring their safety and that of our staff,” Russo added.