National Bank of Kenya (NBK) has reported a Sh729million net profit in the first half of 2022 up from Sh765million posted over a similar period in 2021.
Whereas the Bank reported remarkable growth in total operating income at 13 per cent, operating costs grew by 11 per cent on the back of increased investments in strategic projects to enhance operational excellence and customer experience.
NBK Acting Managing Director Peter Kioko said that there was steady income growth,which the bank expects to increase in future periods when benefits from its current digitization and operational investments are realized.
“Our loan loss provision increased, highlighting the challenging lending environment of a tough economic period. Despite these challenges, the bank’s loan book grew to Sh69 billion and customer deposits grew to Sh112 billion. We maintained a strong balance sheet; total assets grew by 4 per cent to Sh139 billion,” said Kioko.
During the period, net interest income grew by 18 per cent from the previous year to Sh4.8 billion.
This was largely contributed by interest income, which grew by 17 per cent to Sh6.8 billion owing to increased volumes in loans and advances as well as improved level of debt recoveries.
During the same period, interest expense grew to Sh2.0 billion on increased funding requirements of the bank.
“We are on a steady growth trajectory and anticipate continued growth by supporting our clients and finding opportunities within the current environment. We have, therefore, embarked on a calculated strategy towards ensuring that we provide customer-centric and timely solutions to our customer segments,” said Kioko.
