The National Bank of Kenya (NBK) has recorded a net profit of Kes839 million in the half-year ended June 30, 2024, compared to the Kes3.8 billion loss recorded during a similar period in 2023.
The lender attributed the performance to a 20 percent increase in the bank’s net operating income, which grew to Kes 6.6 billion.
In 2023, the lender’s profit was eaten by the Kes2.3 billion compensation to former Taveta MP Basil Criticos after the lender auctioned his sisal farm.
The Court of Appeal, while overturning a High Court judgment in favor of the lender, ruled that the sisal farm had been undervalued as it, at the time, hosted a quarry and buildings, among other things.
NBK Managing Director George Odhiambo said that the company has been able to turn things around and return to profitability despite the hard economic times the Bank experienced in the first half of the financial year.
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“This positive result underscores the effectiveness of our strategic initiatives and our commitment to delivering value to our shareholders.”
However, the Bank recorded a 9 percent decline in loan impairment charges to Kes886 million.
“As part of our ongoing commitment to enhancing our operational efficiency with the latest tools and technologies, we had the migration of our core banking system to Temenos T24 Transact Release 21, simplifying access to a wide range of banking and financial services for our customers.”
