National Bank of Kenya (NBK) says its 2015 profit will be at least 25 per cent lower than the previous year hurt by an increase in bad loans.
The listed lender 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 2014 period stood at Sh870.7 million compared to Sh1.1 billion in 2013.
On Wednesday, NBK said its non-performing loans portfolio which increased towards the end of 2015 led to a sharp increase in the level of the impairment charge.
It also said the projected sale of one key low yielding asset was not completed in the year thereby reducing its projected income.
“NBK’s earnings for the year ended 31st December 2015 will be at least 25 per cent lower than that reported in the year ended 31st December 2014,” it said in a statement.