Nairobi, July 26, 2017 – National Bank of Kenya has recorded a pre-tax profit of Kes 256 million for the period ending 30 June 2017 compared to Q1 pre-tax profit of KES 84M and full year 2016 pre-tax profit of KES 162M.
While realising the results, the Managing Director & CEO, Mr. Wilfred Musau attributed the remarkable results to various initiatives that led to increased business volumes on FX stream and transactional revenue. The increased focus on FX business led to a 43% growth in income year on year.
During this period, the Bank launched a number of new products and product enhancements including mVISA, Pesalink and Diaspora banking through a partnership with world remit. To improve its customer experience, the Bank enhanced mobile banking under Natmobile *625# enabling full suite of payments including utilities, cash deposits, cash withdrawals, account opening and general enquiries.
The Bank also launched country revenue collections solutions enhancing government revenue collections systems and processes leading to enhanced service levels, improved access to information for planning and decision making.
In the six months period, the bank excelled in cost reduction, cutting an impressive 4% on operating expenses from kes. 3.7B to kes.3.5B. The bank is continuing its program on rationalization of costs. On the other hand, total operating income was KES 4.1 B compared to KES 5.8B same period last year owed to lower loan book and effect of pricing changes.
With the support of strengthened relationships with customers, total deposits grew 6% to KES 101 B from KES 95 B over the same period due to increased number of customers and business from existing clients. Total Customer Deposits grew by 3% from KES 95 B to KES 98 B.
Mr. Musau noted that National Bank’s outlook is bright with an expected increase in profitability and growth in the next half of this year.