National Bank posted a KSh302 million net loss in the financial year that ended on 31st December 2019, compared to KSh7 million net profit booked in the previous year.
The bank was acquired by Kenya’s largest Bank, KCB Group in the third quarter of 2019, a move that saw KCB put in KSh 5billion capital investment into the financially distressed lender.
In 2019, National Bank posted a 1 percent improvement in interest income to KSh9 billion while non interest income improved by 5 percent to KSh2.1 billion.
The lender managed to cut its bad loans by 20 percent to KSh25 billion from KSh31 billion posted in 2018. The drop in bad loans was a result of an aggressive recovery strategy applied in 2019.
The bank’s loan book decreased by 4 percent to KSh45.9 billion while customer deposits decreased by 12 percent to KSh86.9 billion.
National Bank got a new management team following the acquisition by KCB Group. The new team and the strategic partnership the bank has entered into are expected to steer the bank back into profitability, according to the lenders Chief Executive Officer, Paul Russo.
Related: Kenya’s Central Bank approves National Bank acquisition by KCB Group
National Bank Gets New Board of Directors
