NBK Posts KES 839 million Profit After Tax in H1 2024 as Revenue Diversification Pays Off

NBK Posts KES 839 million Profit After Tax in H1 2024 as Revenue Diversification Pays Off

August 2024:  

The National Bank of Kenya (NBK) has recorded a profit after tax of KES 839 million in the first Half-Year 2024.  The pre-tax profit was KES 1.1 billion showcasing a remarkable recovery from a pre-tax loss of KES 3.8 billion recorded in the same period last year.

This turnaround has been driven by a significant 20 per cent increase in the bank's net operating income to KES 6.6 billion, with non-funded income contributing 26% of total operating income—a testament to NBK's successful revenue diversification strategy and operational efficiency improvements.

Commentary: NBK Managing Director George Odhiambo

"Despite the hard-economic times we experienced in the first half of the financial year, we have managed to turn things around and bring the bank back to profitability. Our concerted efforts in income diversification have provided a significant boost, key to our growth, market positioning, and the growing confidence among our customers. This positive result underscores the effectiveness of our strategic initiatives and our commitment to delivering value to our shareholders".

NBK's total assets grew marginally to KES 153 billion, marking a 1% year-on-year increase. This resilience for holding on, in a challenging environment is a testament to our continued commitment to maintaining a strong and stable asset base. Customer deposits closed at KES 102 billion, reflecting a 14% decline compared to the previous year. Despite this temporary decline, we remain confident in our focused approach, which we believe will yield sustainable growth in the future.

Loan impairment charges for the period decreased by 9% year-on-year, totaling KES 886 million. This reduction reflects the success of our enhanced credit management processes, which have strengthened the bank’s financial resilience.

Outlook

“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. We will continue to leverage technology to streamline our operations, enhance the customer experience, and stay ahead in a competitive market. We remain steadfast in deepening our commitment to Sustainability and ESG priorities focusing on supporting Seven Sustainable Development Goals through our corporate social investments and driving sustainable business practices. Additionally, we are proud to have received 10 awards, both locally and internationally, recognizing our efforts in the markets we operate in." MD Odhiambo added.

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