National Bank of Kenya has posted a net profit of KSh 828 million for the full year 2022, this represents a 23.8% decline as compared to Ksh. 1.1 Billion that was reported in a similar period last year.
The rise in profitability was on the back of a 13% rise in operating income to KShs. 11.7 billion compared to KShs. 10.2 billion recorded in 2021. During the period net interest income increased by 10% to KShs. 9.1 billion, mainly contributed by higher lending. The non-funded income stream registered a 29% growth to KShs. 2.6 billion, mainly driven by growth from new businesses such as bancassurance and trade finance.
During the period, total operating expenses increased to KShs 8.6 billion, representing an 11% increase from the previous year, largely driven by increased investments in technology and strategic Bank projects.
Net loans and advances went up 6% to KShs. 71 billion from additional lending to critical sectors of the economy such as agribusiness, building and construction, and manufacturing sectors. Total assets stood at KShs. 143 billion, largely driven by investment securities and customer deposits.
NBK Managing Director George Odhiambo, had this to say, “Despite a challenging operating environment characterized by slowdown in business activity in an election year, rising inflation, currency pressures and geopolitical risks that affected both the global and local economy, we delivered good results, demonstrating our continued strategic focus to deliver innovative and bespoke financial solutions to various customer segments. We are in a strong position to continue supporting our customers as a reliable financial partner in order to achieve their aspirations. Our focus is to invest in and grow market-leading businesses as well as expand into new strategic areas to provide innovative and bespoke financial solutions to our customers”.