National Bank’s earnings rise

The National Bank of Kenya has announced a 35 per cent increase in pre-tax profit for the first nine months of 2008.

The bank recorded Sh1.354 billion pre-tax profit compared to Sh1.004 billion during the same period last year.

NBK attributed the growth to an increase in non-interest income which grew by 35 per cent from Sh1.154 billion in 2007 to Sh1.563 billion this year.

The total operating income grew by 17 per cent from Sh3.324 billion in 2007 to Sh3.887 billion this year.

The bank said in a statement on Wednesday that it has embarked on a new two-year strategic plan for the period 2008-2010 to help it further growth.

The plan aims to eliminate the deficit accumulated over the years in its books allowing it to pay dividends to its shareholders.

Plans to expand

NBK also plans to expand to various strategic locations countrywide and is scheduled to open four branches in December in Kakamega, Embu, Ongata Rongai and Eldoret Airport.

Early this year the Cabinet authorised a two-phased restructuring of the bank one that will see it take on a strategic investor and sell additional shares to the Kenyan public.

In concurrence with the NSSF board, the Cabinet approved a sale of 25 per cent shares to a strategic investor in the first phase among others.