NBK’s lending contracted by Sh6.9 billion or 12 per cent to Sh51.1 billion from Sh58.1 billion.
Non-interest income from fees and commissions dropped 12.35 per cent to Sh552 million.
The lender’s stock of gross toxic debt remained nearly flat at Sh28.9 billion from Sh29 billion.
Its stock of Treasuries decreased 4.29 per cent to Sh33.9 billion.
Troubled lender National Bank of Kenya (NBK) #ticker:NBK slipped into the red in the first three months of the year weighed down by lower interest income.
The mid-sized bank posted Sh278.5 million net loss in the review period compared to Sh59.4 million net profit the year before.
Net interest earnings dropped by Sh227 million to Sh1.21 billion from Sh1.44 billion in March 2016, highlighting the impact of a smaller loan book.
NBK’s lending contracted by Sh6.9 billion or 12 per cent to Sh51.1 billion from Sh58.1 billion.
Non-interest income from fees and commissions dropped 12.35 per cent to Sh552 million.
The lender’s stock of gross toxic debt remained nearly flat at Sh28.9 billion from Sh29 billion.
Its stock of Treasuries decreased 4.29 per cent to Sh33.9 billion.
NBK’s interest expenses dropped 11.7 per cent to Sh769 million, reflecting the impact of a five per cent drop in customer deposits.
NBK will have to wait until September to close a Sh4.2 billion shareholder loan to shore up its capital.
The bank’s capital has remained below regulatory requirements for 25 months.
The lender has been seeking the debt funding from its top two shareholders -- the National Social Security Fund (NSSF) and the Treasury -- since June 2016 following the collapse of a planned Sh13 billion rights issue.
