NBK has posted Ksh 828 million profit for the financial year ending December 31, 2022, a 24.7 percent drop from the Ksh 1.1billion posted in 2021.
The Bank managed strong operable performance, reporting an increase in income growth of 13 percentage from Ksh 10.2 billion recorded in 2021 to Ksh 11.7 billion.
The remarkable growth in revenue was contributed by their net interest income and non-funded income. Throughout the period under review, the Bank’s net interest income increased by 10 percent to Ksh 9.1 billion, mainly contributed through higher lending.
The non-funded income stream registered a 29 percent growth to Ksh 2.6 billion, basically driven by growth from new businesses such as bank assurance and trade finance.
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“Despite a challenging operating environment characterized by the 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, demonstrating our continued strategic focus to deliver innovative and bespoke financial solutions to various customer segments,” NBK Managing Director George Odhiambo said.
Net loans and advances increased by 6 percent to Ksh 71 billion from additional lending to essential sectors of the economy such as agribusiness, building and construction, and manufacturing sectors.
During the period, the whole operating expenses increased to Ksh 8.6 billion, representing an increase of 11% from the previous year that was largely driven by increased investments in technology and Strategic bank projects.
All assets came to Ksh143 billion and it was greatly influenced by investment securities and customer deposits. Whilst reflecting on the 2023 outlook, the MD said: “we are in a strong position to continue supporting our customers as a reliable financial partner in order to achieve their aspirations. Our focus is to invest in and grow market-leading businesses as well as the Board of Directors: Dr. Obuya Bagaka, Eng. Stanley Kamau, CPA. Jones Nzomo, Ms. Linnet Mirehane, Ms. Lina Githuka, Mr. Laban Omangi, Gen. (Rtd.) Dr. Julius W. Karangi, Mr. Paul Russo Regulated by the Central Bank of Kenya expand into new strategic areas to provide innovative and bespoke financial solutions to our customers”.
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