The National Bank of Kenya (NBK) has posted a profit of Sh886 million after tax in the first nine months of the year compared to Sh1.2 billion in the same period last year.
The KCB Group subsidiary attributes the drop to high operations costs that rose by 12 per cent in the review period.
According to NBK acting managing director Peter Kioko, the performance reflects the bank’s continued investments in key areas of technology and operational excellence for future growth.
"Our continued commitment to supporting our customers by offering sustainable financial solutions underscores our top line performance," Kioko said in a financial statement issued, Wednesday.
Total operating costs excluding provisions are at Sh6.5 billion, an increase of 12 per cent from Q3, 2021 mainly driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as internet and agency banking platforms.
During the period, net interest income grew by 14 per cent from the previous year to Sh6.9 billion as of September 30, 2022.
This was contributed by interest income, which grew by 12 per cent to Sh9.9 billion owing to increased volumes of loans and advances as well as improved level of recoveries.
During the same period, there was an eight per cent growth in interest expense to Sh3 billion on account of increased cost of funds.
“ We remain focused on providing an enabling environment especially for the MSME sector to continue to thrive by tailoring solutions to suit their needs," Kioko said.
On the balance sheet side, total assets declined by four per cent to Sh140 billion, mainly from reduced government securities as customer deposits were reduced by six per cent mainly driven by corporate deposits.
On Tuesday, KCB announced a 21.4 per cent growth in net earnings for nine months to Sh30.6 billion.
The growth was attributed to sustained growth from both net interest and non-funded income lines.
