National Bank of Kenya (NBK) has posted Kes 2.97 billion in loss after tax for the period ending 30 September 2023 compared to a similar period in 2022.
The loss translates to a 436 percent decline over a similar period in 2022.
NBK has attributed the downward trajectory to one-off costs associated with legal matters, staff voluntary early retirement programs in the first half of the year, and increased loan loss provisions, which has strained its income.
On the other hand, the lender’s nonrefundable income grew by 49% yearly to Kes 2.5 billion in this period.
Its total income remained relatively flat year on year at Kes 9.9 billion.
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However, NBK Managing Director George Odhiambo exuded confidence of a brighter future, adding that the company has put in elaborate strategies which is poised to catapult it back to profits.
”Despite the challenging market conditions and geopolitical dynamics all of which continue to cause monetary and fiscal pressure, we remain optimistic. Commitment to our strategic objectives and focus on prudent risk management, digital innovation, and customer-centricity continue to position us for sustained growth.”
“Our performance in Q3 also underscores the resilience of our business model and the dedication of our team in delivering value to our shareholders and customers,” he said.
The lender’s non-funded income increased by 49 percent year on year to show Kes 2.5 billion with interest expense standing at Kes 3.9 billion, a growth of 31 percent mainly on elevated funding costs on both short-term and long-term deposits in the market.
The growth was mainly driven by increased revenues from foreign exchange trading and increased volumes derived from the current digitization journey, launch of new products, and strategic partnerships.
Likewise, its customer deposits grew to Kes 116 billion, representing a 7 percent increase over a similar period in 2022, while its net loans and advances grew by 12 percent year on year to Kes 78.2 billion.
