National Bank posts Sh177m in full-year profit aided by lower costs
National Bank of Kenya (NBK) has posted Sh177 million in profit after- tax for the financial year ending December 31, 2020.
This represents a 167 per cent growth from the previous year, in what management attributed to increase in loan volumes and lower operating costs, even as the bank battled the impact of the Covid-19 pandemic.
During the period, NBK rolled out a raft of interventions to cushion customers from effects of the pandemic for continuity of their businesses and a reprieve from the financial strain.
The bank restructured loans to the tune of over Sh7 billion and waived fees on digital channels.
Paul Russo, NBK’s managing director said even though the pandemic disrupted its plans, slowed recovery journey, and impacted the business and people, the bank still managed to deliver some growth.
“This is an indication that our fundamentals are solid and remained resilient to the shock,” he said.
According to the financials, interest income grew by eight per cent to stand at Sh9.7 billion, largely due to increased volumes in loans. The interest expense remained relatively flat at Sh2.7 billion.
It shows that total operating costs decreased by six per cent, because of reduced loan provisioning to accommodate the heightened risks due to effects of the pandemic.
This period also saw the bank continue to drive cost management initiatives.
The bank further strengthened its balance sheet, with assets growing by 13 per cent to Sh126.7billion from Sh112billion; largely from net loans and advances which were up 21 per cent to Sh55.5billion.
Russo said with Covid-19 vaccination and gradual reopening of the economy, the bank is optimistic about its fortunes this year, adding” “We expect better performance.”