The National Bank of Kenya (NBK) has reported a KShs 1.06 billion profit after tax for Financial Year 2024, a remarkable recovery from a KShs 3.3 billion loss in 2023.
The turnaround, driven by improved efficiency, digital transformation, and cost optimization, underscores NBK’s resilience amid a tough economic climate.
The bank’s revenue growth stemmed from balance sheet optimization and a revamped digital strategy, including a new core banking system and enhanced digital payments platform, boosting customer experience and operational efficiency.
NBK Managing Director George Odhiambo credited the success to diversified revenue streams and a focus on customer service.
“The year 2024 saw us bounce back despite macroeconomic challenges, thanks to improved systems and customer-centric innovations,” he said.
Key financials showed a 12% rise in operating income to KShs 12.65 billion, with non-funded income contributing 23%.
Net interest income grew 24% to KShs 9.8 billion from KShs 7.9 billion, though interest expenses rose 18% to KShs 6.4 billion due to higher borrowing costs.
Operating expenses dropped 22% to KShs 9.1 billion from KShs 11.7 billion, reflecting cost-saving measures and the absence of prior one-off expenses. Credit impairment charges also fell 21%, highlighting effective risk management.
However, customer deposits decreased to KShs 98 billion from KShs 118 billion, leading to increased borrowings of KShs 23 billion, up from KShs 15 billion in 2023.
Net loans and advances to customers slightly declined to KShs 75 billion from KShs 79 billion.
