National Bank of Kenya record Sh2.97billion loss in third quarter for 2023
The National Bank of Kenya (NBK) has recorded a Sh2.97billion loss after tax for the third quarter of 2023 compared to a similar period last year.
This is a 4.36 per cent decline while the non-refundable income grew by 49 per cent to Sh2.5billion.
The bank attributed legal matters, staff voluntary early retirement program in the first half of the year, and an increase in loan loss provisions which have strained its incomes as the main factors that have led to the downfall trajectory.
The total income for the period remained flat at Sh9.9 billion.
In a statement, NBK Managing Director George Odhiambo exuded confidence saying the future is brighter adding that the company has put in elaborate strategies that are meant to catapult the bank back to making profits.
”Despite the challenging market conditions and geopolitical dynamics all of which continue to cause monetary and fiscal pressure, we remain optimistic. Commitment to our strategic objectives and focus on prudent risk management, digital innovation, and customer-centricity continue to position us for sustained growth.” Odhiambo stated.
He added that the performance for the past quarter reflects what resilience in business is.
“Our performance in Q3 also underscores the resilience of our business model and the dedication of our team in delivering value to our shareholders and customers.” He added.
The non-funded income for NBK increased by 49 percent year on year to show Sh2.5 billion with, interest expense standing at Sh3.9 billion a growth of 31 percent mainly on elevated funding costs on both short-term and long-term deposits in the market.
Further, the customer deposits grew to Sh116billion representing which is a 7 per cent increase over a similar period last year; also the net loans and advances grew by 12 per cent to Sh78.2 billion.
