The National Bank of Kenya has a loss of Kshs 1.2 Billion for the Full year ended 31 December 2015 against a profit of Ksh 1.3 billion posted in the previous year .
The huge drop is mainly attributed to Non Performing Loans which increased in the last quarter of 2015. Provisions and loan impairment charge increased by Ksh 3.2 Billion over the period from Ksh 525.3 Million to Ksh 3.72 Billion.
Total interest increased by 14.4% to Ksh 12.2 Billion driven by higher customer loans and advances.
Interest expenses rose by Ksh 2 Billion to Ksh 5.9 Billion as interest paid on customer deposits increased by 41.1% to Ksh 5.1 Billion.
Customer deposits grew by 5.6% to Ksh 110.6 Billion.
Net loans and advances increased from Ksh 65.6 Billion to Ksh 67.8 Billion.
Total assets grew to Ksh 125.4 billion vs Ksh 123 Billion reported in 2014.
Total liabilities stood at Sh114.4 billion.
“Increasing provisions is a prudent practice in accounting. We have further put elaborate steps in place to manage the recovery of this position, ” Said the newly appointed acting CEO Mr Musau.
The directors do not recommend the payment of dividends.