NBK Chairman Mohamed Abdirahman Hassan (left) and CEO Wilfred Musau during the bank’s AGM in Nairobi on June 14. FILE PHOTO | NMG The National Bank of Kenya (NBK) #ticker:NBK has jumped back from the red to post a Sh150 million net profit in the half year ended June 2019 from a Sh282.7 million loss made in the similar period last year.
The 19 percent earnings growth was on account of increased interest income to Sh3.13 billion from Sh2.61 billion last year on the back of government securities as well as loans and advances.
Non-Interest income dropped to Sh752.4 million from Sh1.05 billion. The lender however posted a 6 percent increase in total operating income to Sh3.88 billion from Sh3.66 billion.
Operating expenses increased by 5.8 percent to Sh3.7 billion mainly on account of staff costs which swelled 9.6 percent to Sh2.07 billion during the half year.
The increase in costs was despite the Group more than halving its rental charges from Sh204 million to Sh99.7 million.
Customer deposits dropped by Sh4.67 billion to Sh91.33 billion from Sh95.99 billion or a 4.85 percent drop.
Total non-performing loans and advances grew to Sh27.49 billion from Sh25.99 billion from the same period in 2018.
Loans and advances to customers dropped by Sh446.3 million to Sh47.3 billion when compared to last year’s six-month position of Sh47.8 billion.
This was contrary to the trend in the sector where Central Bank of Kenya data showed the (banking) sector’s gross loans rose by 6.5 percent or Sh161 billion in the six-month period to Sh2.654 trillion, while the deposits went up 12.6 percent or Sh344.5 billion to Sh3.506 trillion.
NBK is set to be delisted from the Nairobi Securities Exchange by the end of next month as the takeover bid by KCB enters the home stretch.
KCB #ticker:KCB said in a notice on Wednesday that the troubled lender’s shares will be suspended from trading on the bourse from Monday next week.KCB’s share swap offer ends 5 p.m on Friday.
