National Bank of Kenya (NBK) has posted a mega profit drop in its third quarter. The bank’s net profit fell by 76.8 per cent to Sh. 521 million from Sh. 2.1 billion recorded the previous year.
The mid-tier lender’s net interest income however grew by 16 per cent from Sh5.7 billion to Sh6.6 billion.
Provisions for bad loans which ate into the lender’s margins nearly quadrupled from Sh586 million to Sh1.9 billion.
NBK’s total operating expenses increased by 37 per cent from Sh5.6 billion to Sh7.7 billion due to what the lender attributed to “prudent provisioning” and increased investment in systems and product innovations.
NBK attributed the profit drop to a surge in bad loan provisions and expenses.
