26 March 2014

Kenya: NBK Net Profit Rises to Sh1.1 Billion

Nairobi — The National Bank of Kenya (NBK) has recorded a 51 percent rise in net profit in 2013 full year results to Sh1.1 billion from Sh736 million recorded in 2012. Total assets increased by 38 percent to Sh92.56 billion in 2013 from Sh67.18 billion in 2012, while customer deposits increased by 42 percent from Sh55.45 billion in 2012 to Sh78.82 billion in 2013.

Loans and advances to customers increased by 61 percent to Sh47.85 billion in 2013 from Sh29.7 billion that was recorded in 2012. Total operating expenses increased by 11 percent to Sh6.4 billion attributable to restructuring of business operations, expansion of the branch network and investment in technology.

Net interest income grew to Sh5.64 billion in 2013 from Sh4.77 billion in the same period in 2012, representing an 18 percent increase as interest expense reduced significantly by 31 percent from Sh3.66 billion in 2012 to Sh2.53 billion in 2013.

The bank's Chief Executive Officer Munir Ahmed said that the improvement was mainly attributable to growth in lending and lower interest rates in 2013 compared to the highs of 2012.

"The bank intends to maintain the momentum through strategic branch expansion, innovative product and service offering and leveraging technology as well as expand into the neighbouring countries of South Sudan, Uganda and tap into the Diaspora in the near future," he said.

He added that the bank has now positioned itself on a growth path and was well on track with the strategy to grow to a top tier status by 2017. He also said that the bank's shareholders had approved a rights issue during last year's Annual General Meeting and that the process has already begun.

The proceeds will be utilised to support the ambitious business growth planned for the next four years. The board of directors has recommended a first and final dividend of Sh0.33 per share to ordinary and participating preference shareholders. The dividend will be payable to shareholders on the register at close of business on June 27, 2014.

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