Femme StaffThe National Bank of Kenya has recorded a profit after tax of KShs. 1.06 billion in the Financial Year 2024, showcasing a remarkable recovery from an after-tax loss of KShs. 3.3 billion recorded in the same period last year, driven by improved efficiency. Revenue growth was driven by balance sheet optimization and digital transformation, which is a key pillar in the Bank’s strategy. The Bank implemented a new core banking system and enhanced its digital payments platform, improving customer experience and operational efficiencies.
Commentary: The National Bank of Kenya Managing Director George Odhiambo
“The year 2024 has seen the Bank bounce back to profitability despite the rough macroeconomic environment that we encountered. 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.”
Key Financial highlights.
Operating income grew by 12% to KShs. 12.65 billion, with non-funded income contributing 23% of the total operating income. Net interest income grew by 24% from the previous year to stand at KShs. 9.8 billion from KShs. 7.9 billion reported in 2023. Interest expenses registered 18% growth to KShs. 6.4 billion on increased borrowings and growth in funding costs, reflecting the high-interest rate environment.
Operating expenses fell by 22 per cent to KShs. 9.1 billion from KShs 11.7 billion the previous year. This was largely driven by one-off expenses in the previous year and cost optimization measures implemented during the year.
The credit impairment charge was reduced by 21% compared to the previous year, indicating effective risk management and resilience in a tough operating environment characterised by high interest rates.
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Customer deposits declined to KShs. 98 billion compared to KShs 118 billion in the previous year. As a result, borrowing increased from KShs. 15 billion in 2023 to KShs. 23 billion in 2024, and net loans and advances to customers declined from KShs. 79 billion to KShs. 75 billion in 2024.
Outlook
NBK remains committed to leveraging technology, operational efficiency, and customer-centric service delivery to sustain its growth trajectory. The Bank will continue investing in innovative financial solutions and sustainability-driven initiatives that align with its vision for long-term prosperity.
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