Companies

National Bank's Q1 net profit drops 33 pc

nbk

A National Bank branch in Nyeri town. The lender ended the first three months of this year with a total non-performing loans and advances portfolio of Sh15.1 billion. PHOTO | FILE

Summary

  • The bank, which sent six top managers packing in March over alleged mismanagement, says its total loans and advances to clients stands at Sh66.3 billion, a 5.3 per cent drop from last year.

National Bank of Kenya (NBK) has reported that its net profit for the three months to March has dipped by a third to Sh334.6 million compared to the Sh495 million it recorded during a similar period last year.

The NSE-listed lender, which sent six top managers packing in March over alleged mismanagement, says its total loans and advances to clients stands at Sh66.3 billion, a 5.3 per cent drop from last year.

READ: NBK shares fall as profits tumble and managers leave

NBK’s results indicated that its customer deposits during the period increased to Sh99.4 billion, representing a jump from the Sh85.3 billion the lender registered in the quarter to March 2015.

The lender ended the first three months of this year with a total non-performing loans and advances portfolio of Sh15.1 billion.

Its assets stood at Sh115.6 billion (a drop from last year’s Sh116.9 billion) while its total liabilities remained flat at Sh104.2 billion.

NBK’s board on March 29 sent six top managers, including the CEO, on compulsory leave pending investigations into alleged breach of fiduciary duty and failure to adhere to corporate governance rules.

Munir Ahmed, who served as the bank chief executive for the last four years, later resigned.

READ: Munir Ahmed looks back at his short tenure as NBK boss

On March 21, the lender reported a staggering full-year loss of Sh1.2 billion, results that not only reverse the after-tax profit of Sh870.7 million it made in 2014 but also go down as it worst performance in recent history.