8/8/2019 National_Bank_of_Kenya_Financial_results_30_September_2010

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The Board of Directors of National Bank of Kenya Limited hereby announce the un-audited results of the Bank for the third quarter ended 30 September

2010

I A L A - ep-1 - un-1 1- ar-1 1- ec- - ep- ALA - ep-1 - un-1 1- ar-1 1- ec- - ep-

for t he third quart er ended 30 September 2010 Shs'000 Shs'000 Shs'000 Shs'000 Shs'000 as at 30 September 2010 Shs'000 Shs'000 Shs'000 Shs'000 Shs'000

Un-audit ed Un-audi t ed Un-audit ed Audi t ed Un-audit ed Un-audit ed Un-audi t ed Un-audit ed Audi t ed Un-audi t ed

1 Interest Income A Assets

1.1 Loans and advances 1,619,694 1,030,212 492,567 1,621,114 1,169,582 1 Cash (both local and foreign) 1,688,639 1,591,965 1,493,710 1,470,378 1,308,812

1.2 Government securities 2,424,721 1,858,557 747,105 2,814,100 2,071,701 2 Balances due from Central Bank Of Kenya 8,797,206 4,530,623 4,589,811 6,418,485 7,300,232

1.3 Deposits and placements with banking institutions 20,329 16,989 5,531 49,795 36,699 3 Kenya Government securities 21,129,305 25,307,179 28,722,237 26,609,661 26,314,742

1.4 Other Interest Income - - - - - 4 Foreign Currency Treasury bills and bonds - - - - -

1.5 Total interest income 4,064,744 2,905,758 1,245,203 4,485,009 3,277,982 5 Deposits and balances due from local banking institutions 1,495,529 500,297 2,181,539 166,677 3,490,4696 Deposits and balances due from banking institutions abroad 1,219,431 1,226,662 1,252,513 987,594 1,051,517

2 Interest Expense 7 Government and other securities held for dealing purposes 11,178,180 6,668,684 - - -

2.1 Customer deposits 879,998 656,310 330,541 1,132,065 766,010 8 Tax recoverable - - - -

2.2 Deposits and placements from banking institutions 8,059 235 33 20,551 23,629 9 Loans and advances to customers (net) 17,334,825 15,490,676 14,577,058 13,156,455 12,025,066

2.3 Other - - - - - 10 Investment securities 52,509 52,509 52,509 52,509 36,716

2.4 Total Interest Expenses 888,057 656,545 330,574 1,152,616 789,639 11 Balances due from group companies - - - - -

12 Investment in associates - - - - -

3 Net Interest Income 3,176,687 2,249,213 914,629 3,332,393 2,488,343 13 Investment in subsidiary companies 19,963 19,963 19,963 19,963 19,963

14 Investment in joint ventures - - - - -

4 Non-Interest Income 15 Investment in properties - - - - -

4.1 Fees and commissions on loans and advances 172,865 103,810 50,811 224,646 106,283 16 Property and equipment 2,259,492 2,136,904 2,113,272 2,071,001 1,886,189

4.2 Other fees and commissions 823,961 535,554 270,134 1,128,803 882,412 17 Prepaid lease rentals 11,812 11,837 11,874 11,911 11,948

4.3 Foreign exchange trading income ( loss ) 208,818 146,875 59,700 297,384 229,465 18 Intangible assets 56,784 49,947 53,702 57,078 49,281

4.4 Dividend Income - - - - - 19 Deferred tax asset - - - - -

4.5 Other Income 775,037 198,168 183,039 753,412 378,590 20 Retirement benefit asset - - - - -

4.6 Total Non-Interest Income 1,980,681 984,407 563,684 2,404,245 1,596,750 21 Other assets 2,161,004 1,803,729 1,298,289 382,696 1,746,014

22 Total Assets 67,404,679 59,390,975 56,366,477 51,404,408 55,240,949

5 Total Operating Income 5,157,368 3,233,620 1,478,313 5,736,638 4,085,093

B Liabi lities

6 Other Operating Expenses 23 Balances due to Central Bank of Kenya - - - - -

6.1 Loan loss provision 220,580 150,002 100,001 143,520 113,708 24 Customer deposits 53,794,244 46,380,597 45,265,094 41,995,446 41,438,209

6.2 Staff costs 1,782,848 1,160,567 569,950 1,986,720 1,528,091 25 Deposits and balances due to local banking institutions 2,265 2,798 26,441 50,290 64,768

6.3 Directors' emoluments 28,200 23,865 11,485 49,708 34,263 26 Deposits and balances due to foreign banking institutions - - - - -6.4 Rental charges 65,677 53,104 20,116 78,377 60,786 27 Other money market deposits - - - - -

6.5 Depreciation charge on property and equipment 194,314 102,480 51,480 203,854 127,462 28 Borrowed funds - - - - -

6.6 Amortisation charges 21,751 14,191 7,095 28,529 23,172 29 Balances due to group companies 21,976 21,976 21,976 21,976 21,976

6.7 Other operating expenses 857,115 528,905 232,017 1,086,489 766,915 30 Tax payable 73,149 8,860 270,519 114,944 26,947

6.8 Total Operating Expenses 3,170,485 2,033,114 992,144 3,577,197 2,654,397 31 Dividends payable 10,517 10,518 10,521 10,524 108,961

32 Deferred tax liability 198,124 198,124 198,124 198,124 89,458

7 Profit before tax and exceptional items 1,986,883 1,200,506 486,169 2,159,441 1,430,696 33 Retirement benefit liability - - - - -

8 Exceptional items - - - - - 34 Other liabilities 4,045,634 4,044,068 2,335,517 1,105,412 6,309,912

9 Profit after exceptional items 1,986,883 1,200,506 486,169 2,159,441 1,430,696 35 Total Liabilities 58,145,909 50,666,941 48,128,192 43,496,716 48,060,231

10 Current tax (635,803) (384,162) (155,574) (680,560) (457,823)

11 Deferred tax - - - (15,926) - C Shareholders ' Funds

12 Profit after tax and exceptional items 1,351,080 816,344 330,595 1,462,955 972,873 36 Paid Up/Assigned Capital 7,075,000 7,075,000 6,675,000 6,675,000 6,675,000

37 Share Premium/(discount) - - 370,585 370,585 370,585

38 Revaluation reserve 682,639 682,639 682,639 682,641 454,679

OTHER DISCLOSURES 30 -S ep-1 0 3 0-J un-1 0 3 1-Mar-10 3 1-Dec-0 9 3 0-S ep-0 9 39 Retained Earning s/ (Accumu la ted lo sse s) 1,332,032 840,492 384,158 53,563 (401,157)

Shs'000 Shs'000 Shs'000 Shs'000 Shs'000 40 Statutory Loan Loss Reserve 169,099 125,903 125,903 125,903 81,611

Un- audi t ed Un-audi t ed Un-audi t ed Audi t ed Un-audi t ed 41 Proposed Dividends - - - - -

1 Non-performing loans and advances 42 Capital grants - - - - -

a Gross non-performing loans and advances 1,061,560 1,323,904 1,325,277 1,301,757 1,245,891 43 Total Shareholders' Funds 9,258,770 8,724,034 8,238,285 7,907,692 7,180,718

Less: 44 Total L iabi li ti es & Sha reho lder s' Funds 67,404,679 59,390,975 56,366,477 51,404,408 55,240,949

b Interest in suspense 29,892 34,824 35,509 33,651 31,080

c Total Non-performing loans and advances (a-b) 1,031,668 1,289,080 1,289,768 1,268,106 1,214,811 CONSOLIDATION

Less:d Loan loss Provisions 755,111 1,043,028 989,397 888,577 837,294

e N et NPLs exposure (c-d) 276,557 246,052 300,371 379,529 377,517

f D iscounted Value of Securities 276,557 246,052 300,371 379,529 377,517 The directors do not recommend the payment of an interim dividend.

g Net NPLs exposure (e-f) - - - - -

Consolidated financial statements have not been prepared as the subsidiary companies are dormant and the amounts involved are not

material.

The un-audited financial statements are extracts of the financial statements and records of the Bank which were approved by the Board of

2 Insider loans and Advances

a Shareholders and associates - - - - - BOARD OF DIRECTORS

b Directors 12,704 4,157 4,808 4,418 4,900

c Employees 2,206,437 1,981,789 1,835,944 1,778,718 1,696,388 M.E.G.Muhindi National Social Security Fund

d Total insider loans, advances and other facilities 2,219,141 1,985,946 1,840,752 1,783,136 1,701,288

A.C.Juma Dr J.N.Riria

3 Off-Balance sheet items

a Letters of credit, guarantees and acceptances 4,300,403 3,899,915 4,145,435 3,286,329 2,632,681 R.M.Marambii F.L.Atwoli

b Other contingent liabilities - - - - 10,184

c Total contingent liabilities 4 ,3 00 ,4 03 3,8 99 ,9 15 4 ,1 45 ,4 35 3 ,28 6,3 29 2 ,6 42 ,86 5 P.S.Treasury P.W.Ngumi

4 Capital Strength I.M.Mworia L.G.Kamweti - Company Secretary

a Core capital 7,731,492 7,507,320 7,264,446 7,099,149 6,157,992

i i r i I i

Directors on 26 October 2010.

, , , , , . .

c Excess/(Deficiency) (a-b) 7,381, 492 7 ,157,320 6,914,446 6, 749, 149 5,907,992

d Supplementary capital 339,759 296,563 296,563 296,563 195,281 REGISTERED OFFICE

e Total capital (a+d) 8,071,251 7,803,883 7,561,009 7,395,712 6,353,273 National Bank Building,

f T otal risk weighted assets 23,366,249 20,987,728 20,238,799 17,376,921 17,463,905

g Core capital/total deposit liabilities 14% 16% 16% 17% 15% 18 Harambee Avenue, Nairobi.

h Minimum Statutory Ratio 8% 8% 8% 8% 8%

I Excess/(Deficiency) (g-h) 6% 8% 8% 9% 7% P.O. BOX 72866, 00200, Nairobi.

j Core capital/total risk weighted assets 33% 36% 36% 41% 35%

k Minimum Statutory Ratio 8% 8% 8% 8% 8% Telephone 2828000, 0711038000, 0732018000 Fax 311444.

l Excess/(Deficiency) (j-k) 25% 28% 28% 33% 27%

m Total capital/total risk weighted assets 35% 37% 37% 43% 36% E-Mail : info@nationalbank.co.ke

n Minimum Statutory Ratio 12% 12% 12% 12% 12%

o Excess/(Deficiency)(m-n) 23% 25% 25% 31% 24% Website : www.nationalbank.co.ke

5 L iquidi ty

a Liquidity Ratio 52% 50% 38% 35% 43%

b Minimum Statutory Ratio 20% 20% 20% 20% 20%

c Excess/(Deficiency)(a-b) 32% 30% 18% 15% 23%

www.nationalbank.co.ke