Thread by @mmnjug

.@National_Bank has posted Kes1.1B in profit after tax for full year 2021 representing a whopping 431% increase from 2020, which was driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.

.@National_Bank Managing Director, Paul Russo attributed the strong financial results to the Bank’s deliberate focus on its strategic initiatives which are anchored on customer experience.

Our strong performance was also supported by improving macro-economic environment and improved quality of credit. We maintained a strong balance sheet growth as evidenced by increase in customer deposits and 21 per cent growth in customer loans and advances. - MD Paul Russo

Operating income up 15% to Kes10.2B.
Low levels of credit provisions led to increase in profit before tax of 330%.
Net interest income up 18% to Kes8.3B
Interest income up by 26% to Kes12.2B due to increased volumes of loans and advances as well as improved level of recoveries.

Interest expense up 47% to Kes4.0B on increased customer deposits, from transactions on the revamped digital channels, increased bank deposits as well as subordinated debt to shore up the capital requirements of the Bank.

Total operating costs excluding provisions are at Kes7.8B, a 7% increase from 2020 driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as Internet and agency banking platforms.

Total assets growth by 16% to Kes146B
Net loans and advances up by Kes12B to Kes67B
Customer deposits up by Kes6.7B to KES105.8B
Deposits from banks up by Kes8.1B to Kes21.5B as at 31 December 2021

During the year, the parent company @KCBGroup approved the conversion of subordinated debt Kes3.45B, which was classified as Tier II capital to equity. The conversion resulted in @National_Bank complying with regulatory ratios with regards to core capital as at 31 December 2021.

.@National_Bank is now implementing other internal strategies aimed at raising organic capital including rigorous bad debt collection and balance sheet growth to boost profitability which will ensure full compliance with the capital ratios.

.@National_Bank continues to maintain a high liquidity profile of 42% placing it in a strong position to continue supporting its customers during the ongoing economic recovery following the COVID-19 pandemic.