Peter Kioko appointed as acting Managing Director of National Bank of Kenya

KENYA – The National Bank of Kenya (NBK), a commercial bank in Kenya and a subsidiary of KCB Group Plc, has appointed Peter Kioko as acting Managing Director effective June 10, 2022.

Kioko was appointed to fit the shoes of Paul Russo, who was last month appointed as the Kenya Commercial Bank CEO following the exit of Joshua Oigara.

KCB Group is delighted to have Peter steer National Bank to greater heights as he has played a pivotal role in driving the transformation of the bank. Hence his appointment reflects our commitment to continue strengthening the business,” said Russo while announcing the appointment.

Kioko, who joined the bank in November 2016, is currently the Director, Finance and Strategy at NBK, a position he continues to hold even as he serves as the new acting managing director. He has worked in the position under two different MDs, the outgoing Paul Russo and the former MD Wilfred Musau.

He brings to this new role, over 25 years of cumulative financial management experience having served in an array of leadership roles in various local and international organizations.

He previously worked at East Africa Breweries Limited (EABL) as the head of risk and audit before becoming its finance director. He worked at Stanbic Bank as the finance manager – corporate and investment banking and Kenya Shell / BP Limited as the Group Financial Controller.

Kioko holds a Bachelor of Commerce (Accounting Option) from the University of Nairobi, a Post Graduate Diploma from the University of Bradford, and is a Certified Public Accountant. He is also a member of ICPAK.

KCB, which completed the buyout of National Bank in March 2020, injected KSh5 billion (US$4.27m) of new capital into the bank in December 2019 to recapitalise the lender which had breached critical capital ratios for years.

NBK financials

NBK has recorded a KSh395 million (US$3.37m) profit after tax for the quarter ending March 31, 2022. This is a 72 per cent rise compared to KSh229 million (US$1.95m) it posted over a similar period last year.

The growth was attributable to an increase in operating income which grew to KSh2.7 billion (US$23.04m) from KSh2.4 billion (US$20.48m) over the same period last year, representing a 13 per cent growth.

This was anchored on higher revenues from loan interest, and a growth of five per cent in non-interest income, driven by increased accounts acquisition, and foreign exchange gains in retail and corporate clients.

During the period, net interest income grew by 15 per cent to KSh2.2 billion (US$18.77m) as compared to KSh1.9 billion (US$16.21m) the previous year.

This was contributed by interest income which grew by 19 per cent to KSh3.2 billion (US$27.30m), as a result of increased volumes of loans and advances, as well as improved level of recoveries.

Total operating costs excluding loan loss provisions increased by five per cent to KSh2 billion (US$17.06m) year-on-year.

This was driven by increased investments in cybersecurity, strategic bank projects to enhance operational excellence and customer experience such as internet and agency banking platforms.

On the balance sheet side, total assets grew to KSh140 billion (US$1.19bn), representing a strong growth of eight per cent year-on -year.

The growth was majorly rom net loans and advances which were up by KSh10 billion (US$85.32m) to KSh67 billion (US$571.67m).

The bank’s capital and liquidity levels remain strong, management has said, firmly enabling the bank to support its customers, especially those in the SME sector.

NBK said its concerted loan recovery efforts have contributed to stabilizing the credit portfolio.

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