National Bank of Kenya’s half year net profit has more than doubled on improved revenues and cost management. In reflection, its share price at the NSE shot upwards by as much as 12.86 per cent to trade at Sh. 21.50 per share from yesterday’s closing price of Sh. 19.05 per share.
NBK says its profit after tax for the six months to June increased to Sh1.72 billion from Sh776.3 million posted during a similar period last year.
NBK, which is majority owned by Treasury and NSSF, announced that its total operating income for the period increased 29 per cent to Sh6.2 billion compared to Sh4.8 billion last year. Total operating expenses decreased two per cent to Sh3.4 billion.
“It is remarkable that our costs are reducing year-on-year when the business volumes, branch network and investment in technology are all increasing,” said Munir Ahmed, NBK’s chief executive officer.
“The good results are a testimony that the bank’s five year transformation agenda that began in March 2013 is strongly on course. As we continue with this agenda, we are strategically leveraging on innovation and technology,” he added.
Customer deposits increased by six per cent to Sh97.2 billion while loans and advances to customers grew by 31 per cent from Sh57.7 billion last year to Sh71.4 billion.
Interest income from loans grew 39 per cent to Sh4.6 billion while interest expenses from deposits increased 53 per cent to Sh2.37 billion.
The bank’s total assets increased 14 per cent to Sh124.4 billion.
“These results are very impressive; I challenge you to look for any other bank in the market that will post such earnings,” Mr Ahmed said on Tuesday morning during the release of the results.
“I am confident that our strategy is on course to achieve top tier status by 2017.”