2022 Full Year

I. STATEMENT OF FINANCIAL POSITION BANK BANK GROUP GROUP

as at 31 December 2022 31-Dec-21 31-Dec-22 31-Dec-21 31-Dec-22

KShs'000 KShs'000 KShs'000 KShs'000

Audited Audited Audited Audited

A Assets

1. Cash ( both Local & Foreign) 1,250,983 1,432,365 1,250,983 1,432,365

2. Balances due from Central Bank of Kenya 7,722,963 3,806,747 7,722,963 3,806,747

3. Kenya Government and other securities held for dealing purposes

4. Financial Assets at fair value through profit and loss

5. Investment Securities:(a+b) 53,369,382 48,691,029 53,452,206 48,880,214

a) Held to Maturity:(i+ii) 33,345,031 24,859,649 33,345,031 24,871,033

i. Kenya Government securities 33,049,950 24,564,568 33,049,950 24,575,952

ii. Other securities 295,081 295,081 295,081 295,081

b) Available for sale:(i+ii) 20,024,351 23,831,380 20,107,175 24,009,181

i. Kenya Government securities 20,024,351 23,831,380 20,107,175 24,009,181

ii. Other securities

6. Deposits and balances due from local banking institutions 1,852,529 1,722,415 1,852,529 1,722,415

7. Deposits and balances due from banking institutions abroad 496,359 856,588 496,359 856,588

8. Tax recoverable - 35,633 - 39,434

9. Loans and advances to customers (net) 67,045,738 71,188,674 67,045,738 71,188,674

10. Balances due from banking institutions in the group - 20,504 - 20,504

11. Investments in associates 649,876 630,147 649,876 630,147

12. Investments in subsidiary companies 24,963 24,963 - -

13. Investments in joint ventures - - - -

14. Investment properties - - - -

15. Property and equipment 4,119,087 2,107,445 4,120,459 2,108,484

16. Prepaid lease rentals - - - -

17. Intangible assets 612,378 413,519 636,462 431,823

18. Deferred tax asset 3,317,439 4,423,855 3,316,905 4,425,472

19. Retirement benefit asset - - - -

20. Other assets 6,081,608 7,415,390 5,910,476 7,247,550

21. TOTAL ASSETS 146,543,305 142,769,274 146,454,956 142,790,417

B. Liabilities

22. Balances due to Central Bank of Kenya 3,496,740 - 3,496,740 -

23. Customer deposits 106,103,099 105,675,307 105,786,296 105,386,533

24. Deposits and balances due to local banking institutions 10,554,365 12,276,816 10,554,365 12,276,816

25. Deposits and balances due to foreign banking institutions 7,455,621 6,213,529 7,455,621 6,213,529

26. Other money market deposits - - - -

27. Borrowed funds 628,790 628,790

28. Balances due to banking institutions in the group - 38,104 - 38,104

29. Tax payable 215,227 - 237,067 -

30. Dividends payable 274 - 274 -

31. Deferred tax liability - - - -

32. Retirement benefit liability - - - -

33. Other liabilities 2,353,257 2,846,796 2,409,259 2,901,832

34. TOTAL LIABILITIES 130,178,583 127,679,342 129,939,622 127,445,604

C. Shareholders' Funds

35. Paid up /Assigned capital 12,683,038 12,683,038 12,683,038 12,683,038

36. Share premium/(discount) 3,141,319 3,141,319 3,141,319 3,141,319

37. Revaluation reserves 1,200,558 - 1,200,560 -

38. Retained earnings/Accumulated losses (5,190,271) (4,324,159) (5,038,471) (4,064,249)

39. Statutory loan loss reserves 4,520,549 4,374,215 4,520,549 4,374,215

40. Other Reserves 9,529 (784,481) 8,339 (789,510)

41. Proposed dividends - - - -

43. Capital grants - - - -

44. TOTAL SHAREHOLDERS' FUNDS 16,364,722 15,089,932 16,515,334 15,344,813

45. Minority interest

46. Total Liabilities & Shareholders' Funds 146,543,305 142,769,274 146,454,956 142,790,417

II. STATEMENT OF COMPREHENSIVE INCOME BANK BANK GROUP GROUP

for the period ended 31 December 2022 31-Dec-21 31-Dec-22 31-Dec-21 31-Dec-22

KShs'000 KShs'000 KShs'000 KShs'000

Audited Audited Audited Audited

1. Interest Income

1.1. Loans and advances 6,301,436 7,499,952 6,301,436 7,499,952

1.2. Government securities 5,761,130 5,616,106 5,769,193 5,637,016

1.3. Deposits and placements with banking institutions 170,981 40,017 170,981 40,017

1.4. Other Interest Income 6,221 35,501 6,221 35,501

1.5. Total interest income 12,239,768 13,191,576 12,247,831 13,212,486

2. Interest Expense

2.1. Customer deposits 2,941,403 3,123,059 2,929,073 3,106,757

2.2. Deposits and placements from banking institutions 687,169 853,860 687,169 853,860

2.3. Other interest expenses 347,976 171,048 347,976 171,048

2.4. Total Interest Expenses 3,976,548 4,147,967 3,964,218 4,131,665

3. Net Interest Income 8,263,220 9,043,609 8,283,613 9,080,821

4. Non-Interest Income

4.1. Fees and commissions on loans and advances 84,686 182,740 84,686 182,740

4.2. Other fees and commissions 691,150 781,435 939,446 1,024,153

4.3. Foreign exchange trading income (loss) 666,907 964,611 666,907 964,611

4.4. Dividend Income 100,021 - 21 -

4.5. Other Income 305,043 390,978 299,842 390,978

4.6. Total Non-Interest Income 1,847,807 2,319,764 1,990,902 2,562,482

5. Total Operating Income 10,111,027 11,363,373 10,274,515 11,643,303

6. Other Operating Expenses

6.1. Loan loss provision 1,014,004 2,003,475 1,014,004 2,003,475

6.2. Staff costs 4,266,885 4,694,743 4,293,896 4,743,387

6.3. Directors' emoluments 26,719 35,038 33,581 45,694

6.4. Rental charges 141,700 123,551 142,054 123,824

6.5. Depreciation charge on property and equipment 762,341 589,774 762,545 590,107

6.6. Amortisation charges 364,429 285,536 369,246 291,316

6.7. Other operating expenses 2,147,992 2,783,626 2,148,889 2,828,936

6.8. Total Operating Expenses 8,724,070 10,515,743 8,764,215 10,626,739

7. Profit before tax and exceptional items 1,386,957 847,630 1,510,300 1,016,564

8. Exceptional items

9. Profit after exceptional items 1,386,957 847,630 1,510,300 1,016,564

10. Current tax 531,628 553,222 598,616 614,116

11. Deferred tax (162,261) (425,371) (161,321) (425,443)

12. Profit after tax and exceptional items 1,017,590 719,779 1,073,005 827,891

13. Minority interest

14. Profit after tax, exceptional items and minority interest 1,017,590 719,779 1,073,005 827,891

15. Other Comprehensive Income

15.1. Gains/(Losses) from translating the financial statements of foreign

operations

15.2. Fair value changes in available for sale financial assets (62,663) (1,134,300) (64,530) (1,139,785)

15.3. Revaluation surplus on Property,plant and equipment

15.4. Share of other comprehensive income of associates

15.5. Income tax relating to components of other comprehensive income 18,799 340,290 19,271 341,935

16. Other Comprehensive Income for the year net of tax (43,864) (794,010) (45,259) (797,849)

17. Total comprehensive income for the year 973,726 (74,231) 1,027,746 30,042

Earnings Per Share 8% 6% 8.5% 6.5%

BANK BANK

31-Dec-21 31-Dec-22

III. OTHER DISCLOSURES KShs'000 KShs'000

Audited Audited

1. Non-performing loans and advances

a) Gross non-performing loans and advances 26,541,854 18,495,986

b) Less:Interest in suspense 4,391,263 2,434,820

c )Total Non-performing loans and advances (a-b) 22,150,591 16,061,166

d) Less:Loan loss Provisions 11,782,093 10,227,482

e) Net NPLs exposure (c-d) 10,368,498 5,833,684

f) Discounted Value of Securities 10,239,577 5,575,691

g) Net NPLs exposure (e-f) 128,920 257,994

2. Insider loans and Advances

a) Directors,Shareholders and associates 18 19

b) Employees 5,845,656 5,725,588

c )Total insider loans, advances and other facilities 5,845,674 5,725,607

3. Off-Balance sheet items

a) Letters of credit, guarantees and acceptances 4,514,574 8,622,735

b) Forwards, swaps and options 5,204,900 6,121,453

c) Other contingent liabilities

d) Total contingent liabilities 9,719,474 14,744,188

4. Capital Strength

a) Core capital 10,288,488 11,034,430

b) Minimum Statutory Capital 1,000,000 1,000,000

c) Excess/(Deficiency) (a-b) 9,288,488 10,034,430

d) Supplementary capital 1,316,500 1,129,549

e) Total capital (a+d) 11,604,988 12,163,978

f) Total risk weighted assets 81,308,855 90,363,905

g) Core capital/total deposit liabilities 9.1% 10.0%

h) Minimum Statutory Ratio 8.0% 8.0%

I) Excess/(Deficiency) (g-h) 1.1% 2.0%

j) Core capital/total risk weighted assets 12.7% 12.2%

k) Minimum Statutory Ratio 10.5% 10.5%

l) Excess/(Deficiency) (j-k) 2.2% 1.7%

m) Total capital/total risk weighted assets 14.3% 13.5%

n) Minimum Statutory Ratio 14.5% 14.5%

o) Excess/(Deficiency)(m-n) -0.2% -1.0%

p) Adjusted core capital/total deposit liabilities* 9.2% 10.1%

q) Adjusted core capital/total risk weighted assets* 12.9% 12.4%

r) Adjusted total capital/total risk weighted assets* 14.5% 13.7%

5. Liquidity

a) Liquidity Ratio 41.7% 40.5%

b) Minimum Statutory Ratio 20.0% 20.0%

c) Excess/(Deficiency)(a-b) 21.7% 20.5%

NOTES

* The adjusted Capital Ratios includes the expected credit loss provisions added back to

Capital in line with the CBK Guidance Note issued in April 2018 on implementation of IFRS 9

APPROVAL

The audited financial statements are an extract from the books of the Financial

statements and records of the bank and approved on 7

th

March 2023. and signed on its

behalf by:

Jones Nzomo - Chairman, Board Audit Committee

George Odhiambo - Managing Director

The complete set of FY audited financial statements, statutory and qualitative disclosures

can be accessed on the Bank’s website www.nationalbank.co.ke. They may also be

accessed at the institutions head office located at Harambee Avenue.

This may be also be accessed at the Bank’s registered office listed hereunder.

REGISTERED OFFICE

National Bank Building,

18 Harambee Avenue, Nairobi.

P.O. BOX 72866, 00200, Nairobi.

Telephone: 2828000, 0711038000, 0732018000 Fax : 311444

E-Mail : [email protected]

Website : www.nationalbank.co.ke

The Board of Directors of National Bank of Kenya Limited hereby announce the audited results for the period ended 31 December 2022

For People. For Better.

For women

who are

Bold and

Passionate

Regulated by the Central Bank of Kenya

For more information please call

0703088900/(020)2828900.

Email: [email protected]

or visit www.nationalbank.co.ke