National Bank of Kenya (NBK) profit after tax dropped by KES 286 million to KES 886 million in the third-quarter ending September 30 2022, on increased operating costs.
In its latest financial result, the lender’s profit dropped from KES 1.17 billion in Q3 ending September 30 2021, from KES 886 million in a similar period this year.
Profit dropped after total operating costs, excluding provisions at KES 6.5 billion, increased by 12 per cent from Q3 2021, driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as Internet and agency banking platforms.
NBK Acting Managing Director Peter Kioko said the result reflects the Bank’s continued investments in key areas of technology and operational excellence for future growth.
“We remain focused on providing an enabling environment, especially for the MSME sector to continue to thrive by tailoring solutions to suit their need. Going forward, we are focused on supporting our customers across the wide branch network and footprint and in the various sectors to enable them to achieve their aspirations,” Peter Kioko
In the period, net interest income grew 14 per cent to KES 6.9 billion.
It was contributed by interest income, which grew by 12 per cent to KES 9.9 billion, owing to increased volumes of loans and advances as well as improved levels of recoveries.
On the balance sheet side, total assets declined by 4 per cent to KES 140 billion, mainly from reduced government securities as customer deposits reduced by 6 per cent, mainly driven by corporate deposits.
“Going into the future, we remain optimistic with regard to overall macro-economic outlook and therefore, as NBK, we are keen to leverage on strategic partnerships to support businesses and our individual customers in their growth priorities,” Peter Kioko.
Read also; NBK Reports a Half-Year Net Profit of Ksh 661.8 Million.
