NBK sinks into Sh282.7m half year loss on reduced income

What you need to know:

  • Interest income fell by 9.6 per cent from Sh4.56 billion to Sh4.12 billion as non-interest income also dropped by 13 per cent to Sh1.1 billion.
  • This reduced operating income by 10.1 per cent to Sh3.66 billion.

National Bank of Kenya #ticker:NBK has posted a Sh282.7 million loss in half year ended June 2018, a decline from Sh179.8 million profit booked at a similar period last year.

The six-month loss was on account of reduced interest and non-interest income as the bank remained in breach of three capital ratios as required by Central Bank of Kenya.

Interest income fell by 9.6 per cent from Sh4.56 billion to Sh4.12 billion as non-interest income also dropped by 13 per cent to Sh1.1 billion.

This reduced operating income by 10.1 per cent to Sh3.66 billion.

Operating expenses dropped by 8.2 per cent to Sh3.5 billion mainly on account of loan loss provision shrinking by 80 per cent to Sh47.8 million.

This was despite grows non-performing loans rising from Sh29.4 billion to Sh30 billion during the period under review.

It becomes the first lender to record a loss out of the many that have so far released half year results.

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