National Bank of Kenya has posted a profit after tax of Sh828 million for the financial year ending December 31, 2022 down from Sh1.07 billion same period in 2021.
Nonetheless, the bank maintained a strong performance, reporting an operating income growth of 13 per cent to Sh11.7 billion, compared to Sh10.2 billion recorded in 2021.
The KCB Group subsidiary's revenue growth was contributed by both net interest income and non-funded income.
The bank’s net interest income grew by 10 per cent to Sh9.1 billion, mainly contributed by higher lending.
The non-funded income stream registered a 29 per cent growth to Sh2.6 billion, mainly driven by growth from new businesses such as bancassurance and trade finance.
“Despite a challenging operating environment characterised by a slowdown in business activity in an election year, rising inflation, currency pressures, and geopolitical risks that affected both the global and local economy, we delivered good results," managing director George Odhiambo said on Thursday.
Net loans and advances went up six per cent to Sh71 billion from additional lending to critical sectors of the economy such as agribusiness, building and construction and manufacturing sectors.
During the period, total-operating expenses increased to Sh8.6 billion, representing an 11 per cent increase from the previous year, largely driven by increased investments in technology and strategic bank projects.
Total assets stood at Sh143 billion, largely driven by investment securities and customer deposits.
While reflecting on the 2023 outlook, the MD said the lender's focus is to invest in and grow market-leading businesses, as well as expand into new strategic areas to provide innovative and bespoke financial solutions to our customers.
"Our focus is to invest in and grow market-leading businesses as well as expand into new strategic areas to provide innovative and bespoke financial solutions to our customers," Odhiambo said.
