National Bank of Kenya (NBK) says its net profit for the first half of 2021 surged by 307% to KSh765 million. According to the lender, the sharp increase was driven by increased interest and non-interest income, and lower loan loss provisions.
Net interest income climbed 21% to KSh4.1 billion in June this year, from KSh3.3 billion in June last year. Non-interest income grew to KSh1.1 billion from KSh959 million a year ago, a 12% jump.
National Bank’s loan loss provisions in the half-year period declined to KSh297.4 million from KSh413.7 million in the corresponding period last year, signifying an improvement in loan repayment by the bank’s clients.
The second tier bank registered a 20% growth in loan book size to KSh60.4 billion at the end of June this year from KSh50.3 billion at the end of June last year. Its customer deposits increased by a small margin to KSh99.9 billion from KSh99.6 billion in June 2020.
National Bank kept its first-half operating costs unchanged at KSh4.1 billion, similar to the operating costs in the first half of 2020.
In a public statement, NBK managing director Paul Russo said, “This has been a strong first half that will ensure we help our customers reposition for the awaited economic recovery going into the second half of 2021.” “We believe the new phase of normalcy will unveil growth opportunities for our customers and the Bank,” he added.
Paul Russo reassured investors that the bank has adequate capital to support the expected rise in business activity in the second half of 2021. The bank expects significant growth in revenue and net profit at the end of the financial year.
NBK was fully acquired by Kenya’s second-largest bank by assets, KCB Group, in September 2019 through a share swap deal.