The National Bank of Kenya (NBK) has posted Ksh. 765 million in profit after tax for the half year ending June 30, 2021. This is a 307% growth compared to a similar period last year.
The growth has been attributed to increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions. During the half year, net interest income grew by 21% from the previous year to stand at Ksh. 4.1 billion. This was contributed by interest income which grew by 24% to Ksh. 5.8 billion due to increased volumes of loans and advances as well as sustained recoveries. The half year was marked by a 30% growth in interest paid to Ksh. 1.7 billion on increased customer deposits, from transactions on the revamped digital channels.
Total operating costs during the half year remained relatively flat at Ksh. 4.1 billion over a similar period in 2020. This was despite increased investments in enhanced cybersecurity measures and revamp of the core banking system.
Total assets grew by 12% to Ksh. 134 billion, driven by growth in net loans and advances, which were up 20% to Ksh. 60 billion. This was also supported by relatively flat customer deposits at Ksh. 99.7 billion sustained at the high levels due to increased inflows among existing clients and new accounts in corporate and retail, including National Amanah – The bank’s Islamic Banking business units of the Bank.
Speaking while releasing the financial results, NBK Managing Director Paul Russo said, “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.”
“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,” concluded Russo.