Companies

NBK net profit falls 21.7pc on expenses, restructuring costs

NBK

The National Bank branch in Nyeri town. The lender spent Sh1.1 billion to retrench 190 employees as part of its plans to cut its operating expenses. PHOTO | FILE

National Bank of Kenya (NBK) posted a 21.7 per cent net profit decline in the year ended December 2014, weighed down by higher operating expenses and one-time restructuring costs.

Its net profit in the period stood at Sh870.7 million compared to Sh1.1 billion in 2013.

READ: National Bank’s net earnings hit Sh1.02bn

The bank spent Sh1.1 billion to retrench 190 employees as part of its plans to cut its operating expenses which still increased 12.2 per cent to Sh7.5 billion.

NBK’s loan book grew 65.9 per cent to Sh65.6 billion, helping to generate a 30.9 per cent rise in interest income to Sh10.6 billion.

Its interest expenses increased 54.2 per cent to Sh3.8 billion, reflecting the addition of Sh26.7 billion in customer deposits to a cumulative Sh104.7 billion.

READ: National Bank pays Sh1bn to retrenched staff

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