Nairobi, November 30, 2017 – National Bank of Kenya has recorded a profit before tax of KES 197 million for the period ending 30 September 2017.
Commenting on the financial results, National Bank Managing Director & CEO, Mr. Wilfred Musau shared that, “The financial year 2017 has not been an easy one for business. This has been largely due to unfavorable trading environment”
Customer deposits grew by 2% from 95B to 97B compared to previous year an account of customer flows and new products.
Net Interest income for the period was KES 4.5B, a 30% drop from KES 6.5B same period previous year mainly due to effect of downward price adjustment on loans following capping on interest rates. This was partially compensated by an increase in interest earned from Government securities and improved funding mix which reduced interest expense.
Total operating revenues closed at KES 6.3B representing 24% decrease compared to same period last year mainly due to impact of interest capping and lower fees as volumes of new loans dropped.
Total operating expenses declined by 20% to KES 6.1B from KES 7.6B over the same period last year due to improved cost and credit management.
To drive operational efficiency, the Bank upgraded its core banking system from BankFusion Universal Banking (BFUB) toFusion Banking Essence [FBE], the fifth and latest version of BankFusion Universal Banking (BFUB) system which in time will drive revenue growth, reduce operating expenses and improve on the Customer Experience.
In line with its Strategic Digital Transformation agenda, the Bank revamped its mobile banking offerings to include new service offerings backed by enhanced safety. This is expected to help the Bank leverage on technology to improve customer experience via self services, improve efficiency in processing customer transactions, control cost, manage operational and market risk as well as adopt best practices in organizational performance.
“National Bank continues to embrace innovation while driving a digital bank agenda as a way of increasing efficiency in service delivery and driving financial inclusion.,” said Mr. Musau.