National Bank Q3 2016 Results Commentary
Key Financial Highlights
- Customers’ deposits increased by 6% to 96.4 billion from 90.8 billion over the same period in 2015.
- The growth is driven by new products and increased volumes from customers.
- The Bank grew its net interest income by 16% from 5.7B to 6.6B year on year, driven by prudent management of the cost of funds.
- Total Operating income dropped 4% from 8.7B to 8.4B year on year.
- Operating income from core operations grew by 6% year on year.
- Total operating expenses increased by 37% from KES 5.6B to KES 7.7B due to prudent provisioning and increased investment in systems and product innovation.
- The bank reported a profit before tax 744m, an impressive growth from the 2015 year end loss position.
As part of the transformation plan, the Bank is consolidating gains made on investments in its channels, efficiencies on automation to becoming an innovation leader in the market and driving growth across a diversified portfolio underpinned by digitization.
Through consolidated efforts of the Board of Directors and the Bank’s management team, there is continued strengthening of risk management and corporate governance towards delivering sustainable value for all stakeholders.
During the period under review, the Bank launched its revamped Small Enterprise banking Segment to effectively cater for the financial requirements of Small enterprises and accelerate growth. In the last quarter, National Bank has won various accolades and recognitions in the market for technological excellence, products innovation and customer service.
The awards include:
CIO Gold Mark in 'Recognition of Excellence in Enterprise Information Technology Adoption’.
Customer Service Award. The Bank was recognised for being ‘the most aligned institution to the theme of ‘listening to the customer’ by the Institute of Customer Service (ICS), Kenya.
Islamic Awards – Best Innovative Product in the Islamic Microfinance by the Centre of Islamic Banking and Economics for our Amanah Jenga Biashara product that aims to grow small and medium entrepreneurs under vigilance Shari’ah compliant.