The National Bank of Kenya (NBK) has recorded a Kes117 million profit after tax for the first quarter ending March 2023.
The lender has attributed the growth to increased income from non-funded revenue, which is income derived from fees and interests.
Further, National Bank’s non-funded income grew to Kes884 million KesSh551 million during a similar period last year.
The growth has been attributed to better performance in FX income, which registered an increase of 115%.
“Overall revenue increased by 1% for the quarter, as the growth in non-funded income was offset by a 14% reduction in net interest income, because of the challenging macro- economic environment,” NBK said.
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Likewise, its balance sheet grew to Kes11.1 billion after customer deposits and loan advances grew while loans and advances grew by Kes7.2 billion to Kes75 billion; customer deposits rose by 1.2 per cent to Kes100 billion in the review period.
NBK Managing Director George Odhiambo noted that the Bank’s foundation remains solid, reinforced by strong customer obsession and a highly liquid and well-capitalized balance sheet providing a sustainable growth platform.
“We shall continue to deliver value and find opportunities that support inclusive long-term growth,” he said.
During the period, the bank received an injection of additional Tier II capital from the parent company, KCB Group PLC.
“Looking ahead, the Bank believes that the ongoing global economic recovery efforts will strengthen as the year progresses,” the Bank added.
However, total operating expenses increased to Kes2.2 billion, an 11 per cent jump largely driven by increased investments in strategic bank projects.
