Kenya’s National Bank has announced its results for the period ended March 2016 with a group total interest income of Ksh 3.52 billion versus Ksh 3.08 billion posted in Q1 2015.
The group posted a pre-tax profit of Ksh 477.9 million versus Ksh 707.3 million posted in 2015.
The Bank posted a 38.4% decline in EPS to KES 1.09 in Q1 2016 weighed down by inflated expenses which rose by 31.8% as well as reduced non-funded income which fell by -4.5% to KES 735 Million.
Its Loan book contracted by 5.3% year on year to KES 66.3 Billion as customer deposits grew by 16.6% to KES 99.4 Billion.
Non-funded income fell due to decreased transactional income which was down by 19.6%.
Operating Expenses shot by 9% to Ksh 2.5 Billion.
Non Performing Loans(NPL) ratio stood at 20.4% from 14.7% in Full Year 15 and 9.0% in Q1 2015.
Gross Non Performing Loans rose 143.7% year on year to KES 17 Billion.
Overall the bank’s growth was flat. The bank’s Total capital/total risk weighted assets ratio is at 13.1% against the statutory limit of 14.9% pointing to the need for recapitalization. The bank has been making efforts to do a rights issue to fix its capital issue and get funds for expansion and business growth.
