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FINANCIALS

NBK recovers to post Sh106 million profit in Q1

NBK registered a drop in total assets to Sh97.5 billion from Sh107 billion period in 2018.

In Summary

• The bank’s improved results are coming at the time when plans of its acquisition by Kenya Commercial Bank Group are at advanced stage.

• The bank’s improved results are coming at the time when plans of its acquisition by Kenya Commercial Bank Group are at advanced stage.

National Bank of kenya. Photo/file
National Bank of kenya. Photo/file

National Bank of Kenya’s group financial position in the first quarter of 2019 improved to a net profit position of Sh106.3 million compared to a loss of Sh278.5 million same period last year.

The bank which is on the verge of being fully acquired by the Kenya Commercial Bank Group attributed the improved growing customer deposits and total interest income.

According to the bank’s financial statement, customer deposits for the quarter ended March grew slightly to Sh89.1billion from Sh86.8 billion while interests total interests grew to Sh2.3 billion from Sh1.9 billion same quarter last year.

Both interests from loans and government securities improved to Sh1.16 billion from Sh1.02 billion and Sh1.1 billion and Sh9545.1 million respectively.

Shareholders fund also grew slightly to Sh7.2 billion from Sh6.9 billion in the corresponding quarter last year.

Even so, the group registered a drop in total assets to Sh97.5 billion from Sh107 billion similar period in 2018.

The bank’s improved results are coming at the time when plans of its acquisition by Kenya Commercial Bank Group are at advanced stage.

Yesterday, KCB shareholders unanimously voted for the acquisition proposal made by the board in April, agreeing to 10-for-1 share swap transaction with a par value of Sh5 of NBK.

The acquisition now awaits the approval of NBK shareholders and go ahead from the Competition Authority of Kenya.