Thursday, March 28, 2024

NBK posts Sh. 1.2 billion full year loss down from Sh. 2.3 billion profit in 9 months

National Bank of Kenya (NBK) has swung to a full-year loss after setting aside significantly more money for bad loans, one day after sending its chief executive officer on compulsory leave.

Shockingly, in December last year, NBK announced that it had recorded Sh. 2.3 billion profit from Sh. 1 billion profit in 9 months in 2015.

The bank said its loan impairment charges rose by Sh3.2 billion last year, denting its overall performance. NBK reported a pretax profit of Sh1.3 billion in 2014.
“The bank’s non-performing loan portfolio increased sharply towards the end of 2015 undoing gain of Sh3.3 billion in profit before tax reported by the bank in quarter three of 2015,” NBK said in a statement.
The bank’s assets edged up 1.6 percent to Sh125 billion in 2015 while its net loans and advances climbed 3.3 percent to Sh67.8 billion, it said.
NBK’s net interest income, however, declined by Sh0.4 billion to Sh6.4 billion, due to an increase in interest expenses which rose by 50 percent to Sh5.9 billion on account of tight liquidity in 2015.

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