National Bank net profit up 50pc to Sh1.1 billion

National Bank has registered a 50 per cent growth in its net profit for 2013, helped by increased lending and drop in interest expenses.

The mid-tier lender Wednesday reported a net profit of Sh1.1 billion compared to Sh736 million a year earlier.

“The bank intends to maintain the momentum through strategic branch expansion, innovative product and service offering and leveraging technology,” said Munir Ahmed, the managing director.

The bank’s loan book expanded by 61 per cent to stand at Sh47.9 billion last year from Sh29.7 billion in 2012.

Its interest expenses fell by Sh1.2 billion to Sh2.5 billion, representing a 31 per cent drop, while customer deposits rose by 42 per cent to Sh78.8 billion.

National Bank trailed another mid-tier lender, Family Bank, which more than doubled its profit to Sh1.2 billion last year compared to Sh561 million in 2012.

National Bank said it will pay a first and final dividend Sh0.33 per ordinary share up from Sh0.20 it paid out last year.

The lender plans to expand into South Sudan, Uganda as well as tap into the diaspora market.