National Bank of Kenya’s bad loans have risen to Sh.27.3 billion in the half year ended June. This came as the bank’s net profits fell by a whopping 82 per cent to stand at Sh. Sh.311.2 million compared to Sh.1.7 billion the year before.
According to CBK, NBK’s loan accounts rose more than 12 times to 1.6 million last year, recording one of the most aggressive lending volumes in Kenya.
With is its continued poor performance, the bank has continued to breach CBK’s capital adequacy ratios, with its total capital to total risk weighted assets falling short of the 14.5 per cent regulatory minimum by 1.3 per cent as of June.
Meanwhile, in the first six months of the year, NBK shareholders’ funds dropped to Sh.11.3 billion compared to Sh13.2 billion the year before, making it the only mid-tier lender to record a decline in net worth so far this year. The drop in book value was driven by a decline in assets from Sh. 124.4 billion to Sh. 116.5 billion.
