The National Bank of Kenya (NBK) recorded a profit of KES 828 million for the financial year ending on December 31, 2022, representing a 24.7% decrease from the KES 1.1 billion recorded in 2021.
Although there was a slight dip in earnings, the bank’s operational performance remained strong, as evidenced by its reporting of a 13 per cent growth in operating income to KES 11.7 billion, compared to the KES 10.2 billion recorded in 2021.
This revenue growth was the result of both net interest income and non-funded income. Specifically, the Bank’s net interest income increased by 10 per cent to KES 9.1 billion during the period under review, primarily due to higher lending.
Additionally, the non-funded income stream experienced a significant 29 per cent growth to KES 2.6 billion, mainly driven by the growth of new businesses such as bancassurance and trade finance.
Despite a challenging operating environment characterized by a slowdown in business activity in an election year, rising inflation, currency pressures, and geopolitical risks that affected both the global and local economy, we delivered good results, demonstrating our continued strategic focus to deliver innovative and bespoke financial solutions to various customer segments.
NBK Managing Director George Odhiambo
The increase in net loans and advances to KES 71 billion, which reflects a 6% rise, resulted from additional lending to vital economic sectors like agribusiness, manufacturing, and building and construction.
In the same period, the bank’s operating expenses rose to KES 8.6 billion, indicating an 11% increase from the previous year. The bulk of this increase was due to the bank’s investment in technology and strategic projects.
Total assets amounted to KES 143 billion, primarily driven by investment securities and customer deposits.
NBK 2023 0utlook
We are in a strong position to continue supporting our customers as reliable financial partners in order to achieve their aspirations. Our focus is to invest in and grow market-leading businesses as well as expand into new strategic areas to provide innovative and bespoke financial solutions to our customers.
NBK Managing Director George Odhiambo
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