The National Bank of Kenya (NBK) has reported Ksh 1.06 billion of profit after tax in the Financial Year 2024. This is a remarkable recovery from an after-tax loss of KSh 3.3 billion recorded in the same period last year.
“The year 2024 has seen the Bank bounce back to profitability despite the rough macroeconomic environment that we encountered. This is highly attributed to the improved efficiency in our systems, diversifying revenue streams and continuous improvement in customer service and experience. Looking ahead, we have set our sights on strengthening our relationship with our existing customer base and also enhancing product and service delivery to meet their ever-evolving needs,” said George Odhiambo, Managing Director, NBK
Revenue growth was driven by balance sheet optimization and digital transformation, which is a key pillar in the Bank’s strategy. The Bank implemented a new core banking system and enhanced its digital payments platform, improving customer experience and operational efficiencies.
Key Financial highlights.
- Operating income grew by 12% to KSh 12.65 billion, with non-funded income contributing 23% of the total operating income. Net interest income grew by 24% from the previous year to stand at KSh 9.8 billion from KSh 7.9 billion reported in 2023. Interest expenses registered 18% growth to KSh 6.4 billion on increased borrowings and growth in funding costs, reflecting the high-interest rate environment.
- Operating expenses fell by 22 per cent to KSh 9.1 billion from KSh 11.7 billion the previous year. This was largely driven by one-off expenses in the previous year and cost optimization measures implemented during the year.
- The credit impairment charge was reduced by 21% compared to the previous year, indicating effective risk management and resilience in a tough operating environment characterised by high interest rates.
- Customer deposits declined to KSh 98 billion compared to KSh 118 billion in the previous year. As a result, borrowing increased from KSh 15 billion in 2023 to KSh 23 billion in 2024, and net loans and advances to customers declined from KSh 79 billion to KSh 75 billion in 2024.
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