Customers queue at a National Bank of Kenya branch. PHOTO | EMMA NZIOKA | FILE
NATION MEDIA GROUP
National Bank of Kenya says its 2015 profit
will be at least 25 per cent lower than the previous year, hurt by an
increase in bad loans.
NBK 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 period stood at Sh870.7 million compared to Sh1.1 billion in 2013.
The
lender Wednesday said its non-performing loans portfolio which
increased towards the end of 2015 led to a sharp increase in the level
of the impairment charges.
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.
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