The National Bank of Kenya (NBK), a subsidiary of KCB Group PLC, has announced a significant turnaround in its financial performance for the FY2024, posting a profit after tax of Sh1.06 billion.
This marks a remarkable recovery from an after-tax loss of Sh3.3 billion recorded in the previous year, driven by improved efficiency and strategic initiatives. The bank’s revenue growth was fuelled by balance sheet optimization and a strong focus on digital transformation, which has become a key pillar in its strategy.
The implementation of a new core banking system and enhancements to its digital payments platform have significantly improved customer experience and operational efficiencies. According to data from the bank, there was a 12% growth in operating income to Sh12.65 billion, with non-funded income contributing 23% of the total operating income.
Net interest income saw a substantial increase of 24%, rising to Sh9.8 billion from Sh7.9 billion in 2023. However, interest expenses grew by 18% to Sh6.4 billion, reflecting increased borrowings and higher funding costs in a high-interest rate environment.
Operating expenses fell by 22% to Sh9.1 billion, down from Sh11.7 billion the previous year, largely due to one-off expenses in the prior year and effective cost optimization measures implemented during the year. The bank also demonstrated effective risk management, with the credit impairment charge reduced by 21% compared to the previous year.
Despite these positive developments, customer deposits declined to Sh98 billion from Sh118 billion in 2023, leading to an increase in borrowings from Sh15 billion to Sh23 billion. Net loans and advances to customers also declined slightly, from Sh79 billion to Sh75 billion.
According to George Odhiambo, NBK Managing Director, 2024 was a year of bouncing back to profitability for the bank despite the rough macroeconomic environment.
“This is highly attributed to the improved efficiency in our systems, diversifying revenue streams and continuous improvement in customer service and experience. Looking ahead, we have set our sights on strengthening our relationship with our existing customer base and also enhancing product and service delivery to meet their ever-evolving needs,” he said.
NBK remains committed to leveraging technology, operational efficiency, and customer-centric service delivery to sustain its growth trajectory. The bank plans to continue investing in innovative financial solutions and sustainability-driven initiatives that align with its vision for long-term prosperity.
With a growing network of 74 branch outlets across the country, along with ATMs and electronic channels such as Mobile and Internet Banking, NBK is well-positioned to meet the diverse needs of its customers through its extensive portfolio of products and financial solutions.
