The National Bank of Kenya has recorded a 24 per cent drop in profit to Kes828 million profit for the financial year ending December 31, 2022, from the Kes1.1billion posted in 2021.
The Lender maintained strong operational performance, reporting an operating income growth of 13 per cent to Kes11.7 billion compared to Kes10.2 billion recorded in 2021 despite the slight drop in earnings.
The growth was attributed to net interest income and non-funded income.
Further, the Bank’s net interest income increased by 10 per cent to Kes 9.1 billion in the period under review mainly contributed by higher lending.
The non-funded income stream registered a 29 per cent growth to Kes2.6 billion, mainly driven by growth from new businesses such as bancassurance and trade finance.
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NBK Managing Director George Odhiambo noted despite a year marred by general elections and inflation, the lender recorded good results.
“Despite a challenging operating environment characterized by a slowdown in business activity in an election year, rising inflation, currency pressures, and geopolitical risks that affected both the global and local economy, we delivered good results, demonstrating our continued strategic focus to deliver innovative and bespoke financial solutions to various customer segments,” he said.
Net loans and advances increased by 6 per cent to Kes71 billion from additional lending to critical sectors of the economy such as agribusiness, building and construction, and manufacturing sectors.
Total operating expenses during the year rose to Kes8.6 billion, an 11% rise from the prior year, mostly as a result of increased investments in technology and key Bank projects.
Overall assets were valued at Kes143 billion, mostly as a result of consumer deposits and investment securities.
