State owned National bank of Kenya has recorded a 42.23 per cent profit after tax decrease in its 2017 half year results.
The drop is from Sh311.294 million as at June 30, 2016 to Sh179. 822 million during the same period in 2017.
It comes amidst an 11.98 per cent fall in Loans and advance to customers from Sh64.78 billion to Sh 57.02 billion during the period under review.
Customer deposits fell by 32.05 per cent to Sh1.49 billion from Sh2.19 billion
While net income also dropped by 11.25 per cent, from Sh1.37 billion to Sh1.21 billion due to a decrease in the loans and customer deposits, the banks government securities increased by 39.97 per cent from Sh1.47 billion to Sh2.06 billion.
This indicating a strong leverage of the bank on government securities for revenue following the introduction of interest rate cap which has seen several banks reduce their rate of issuing loans.
The lenders loan loss provisions has reduced by 85.45 percent from Sh1.62 billion to Sh235.25 million despite a 5.13 per cent increase in Non-performing loans from Sh24.84 billion to Sh26.11 billion.
Last month, Kenya Commercial bank is said to have approached major shareholders of the bank with a proposal to acquire it.
However, Capital Markets authority refuted the claim saying they had not received any regulatory fillings regarding the acquisition