News Column

National Bank H1 Earnings Rise

August 31, 2014

Lola Okulo

NATIONAL Bank of Kenya's first half 2014 net profit rose by 16.5 per cent to Sh776.4 million from Sh666.2 million attributed to better management of credit risks and operational costs.

The bank's managing director Munir Sheikh termed the performance "robust" adding that new products have also helped improve financial performance during the period under review.

"We are pleased with these strong first half results, which are as a result of the operational improvements that we have made across the business and the new businesses and products that we have introduced," said Sheikh in a statement.

"This is a testimony that our five year transformation agenda is strongly on course. Our focus on efficiency has also brought the cost-income ratio down further."

Non performing loans went up by 23 per cent to Sh4.99 billion compared to Sh4.06 over same period last year while net interest income grew by 41.6 per cent to Sh1.6 billion from Sh1.13 billion.

Staff costs rose slightly by 8.4 per cent to a total of Sh1.9 billion from Sh1.75 billion recorded during first half 2013.

The bank did not declare any interim dividend.

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Source: AllAfrica

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