Following a successful acquisition of National Bank by Kenya Commercial Bank which now runs as its subsidiary, the Bank announced KShs 675 million in profit before tax and exceptional items for the period ending September 30, 2019.
In April, KCB Group Plc declared its intention to acquire a 100 percent stake of National Bank of Kenya through a share swap deal, comprising of 10 ordinary shares of NBK for every 1 ordinary share of KCB.
Despite a 45% increase in profit before tax compared to a a similar period in 2018, National Bank’s total expenses, increased by 4% year-on-year to KShs 5.4 billion, mainly driven by increased loan loss provisions while operating expenses excluding loan provisions remained relatively flat at KShs 5.4billion
Customer deposits also reduced to Ksh 82 billion as at September 30, 2019 compared to Ksh 93 billion over the same period in 2018, driven by reduced customer flows and tight liquidity in the market. Net loans & advances declined by KShs 150 million to KShs 47.8 billion over the same period issued due to recoveries collections made on existing loans while total assets dropped marginally by 5.0% to Ksh107.2 billion compared to KShs 112.45 billion in the same period last year.
According to the bank’s Managing Director Paul Russo the future looks more promising since National Bank is now part of a bigger stronger family. That with an improved capital base, their focus is now on integrating NBK into the group, while continuing to deliver innovative financial solutions that are attuned to the dynamic needs of our customers.
“The bank achieved this level of growth against the backdrop of a challenging environment, both externally and internally. Our main focus has been enhancing customer experience, preserving and optimizing value while effectively mitigating risks through proactive risk management,” Mr. Russo said.