National Bank of Kenya has issued a profit alert indicating a 25 percent decline in its 2018 net profits. The lender blames increased impairment losses and a one off staff restructuring expense for the expected decline in net earnings.
In the first nine months of 2018, National Bank booked an 84 percent decrease in its earnings from KSh138 million recorded in 2017 to KSh22 million in 2018. The drop was caused by reduced lending hence lower income for the bank.
The bank is expected to release its full year financial results before the end of this week. In the previous financial year, the bank’s net earnings increased from KSh71 million to KSh411 million.
The bank’s management and its board of directors have stated their commitment to deliver value to shareholders by expanding the business and reducing expenses.
