National Bank of Kenya has announced Sh407.15 million in after-tax for the three months ending September 30.
This represents increase from Sh 21.968 million after tax profit for a similar period in 2018, that was however inclined to a transaction charge of Sh535.49 million in the bank's balance sheet.
The bank's performance has been adjusting after a declared intention of a take over by KCB Group that was first made public in April.
In September, Central Bank of Kenya approved the takeover, giving KCB greenlight to acquire 100 per cent stake of NBK.
The bank’s managing director Paul Russo attributed the rise in profitability to growth in operating income during the period under review, adding that the future looks even more promising since it is now part of a bigger stronger family.
“With the improved capital base, our focus is now on integrating NBK into the group, while continuing to deliver innovative financial solutions that are attuned to the dynamic needs of our customers. We are optimistic about the bank’s fortunes,” Russo added.
The total operating income also increased by 7.27 per cent to Sh6.04 billion over the same period.
This was mainly due to growth in interest earned from loans and advances and other earning assets, coupled with continuing diversification of funding base, which resulted in a reduction of interest expense by 8 per cent year on year.
The net interest income from loans and advances increased by 11.6 per cent to Sh4.60 billion over the period.
Total expenses, however, increased by 4 per cent year-on-year to Sh5.4 billion, mainly driven by increased loan loss provisions.
Customer deposits, reduced to Sh82 billion as at September 30, compared to Sh93 billion over the same period in 2018, driven by reduced customer flows and tight liquidity in the market.
Net loans and advances declined by Sh150 million to Sh47.8 billion over the same period issued due to recoveries collections made on existing loans.
Total assets dropped marginally by five per cent to Sh107.2 billion compared to Sh112.45 billion in the same period last year
