The National Bank of Kenya (NBK), a subsidiary of KCB Group, has announced an impressive KES 1.2 billion profit after tax for the third quarter of 2024. This marks a staggering 142% growth compared to the same period last year, reflecting the success of its strategic initiatives amid a challenging macroeconomic environment.
Key Financial Metrics
- Operating Income: Increased by 16% to KES 9.8 billion, with non-funded income contributing 26% of the total.
- Net Interest Income: Rose by 22% year-on-year, driven by enhanced lending activities and strengthened customer engagement.
- Cost Efficiency: Operating expenses declined by 30%, attributed to reduced one-off expenses from the previous year and successful cost optimization.
- Loan Impairments: Provisions decreased by 6% due to reduced cost of risk.
- Customer Deposits: Declined by 12%, while loans and advances maintained stability.
- Shareholders’ Funds: Grew by 13%, signaling improved profitability and financial resilience.
Strategic Initiatives Driving Growth
NBK Managing Director George Odhiambo highlighted the bank’s focus on operational efficiency, income diversification, and risk management as key contributors to its financial performance.
“By leveraging strategic partnerships, we have introduced innovative products tailored to our customers’ evolving needs, reinforcing our commitment to delivering value to stakeholders,” said Mr. Odhiambo.
Sustainability Agenda and Outlook
Looking ahead, NBK is aligning its strategy with global sustainability efforts by introducing green products and services. This focus aims to help customers transition to environmentally responsible practices while contributing to a resilient economy.
“We are dedicated to empowering businesses and individuals to achieve growth priorities while expanding our sustainability agenda,” Mr. Odhiambo added.
Discover more from Techish Kenya
Subscribe to get the latest posts sent to your email.
