The National Bank of Kenya has reported a profit after tax drop of 67.8% in the 3rd quarter results for the nine months ended 30th September 2012. The 67.8% drop is compared to KES 1.23 billion the bank posted in September last year compared to KES 396.99 million the bank reported the same period this year.

This has come out as shocking news to the banking industry which has seen most banks record high profits in the 3rd quarter.

The banks paid interest on customer deposits for the period amounting to KES 2.8 billion as at September compared to KES 712 million the same period last year. This was on a total customer deposit of KES 68.87 billion at September 30th up from KES 56.52 billion in September 2011.

In the period ending September 30th, the bank issued loans amounting KES 27.67 billion  up from KES 26.42 billion in 2011. National Bank earned interest on the loans amounting to KES 3.99 billion up from interest earned on loans and advancements to customers amounting KES 2.43 billion in September 2011.

During the Banks AGM in August, it announced unaudited results stating that profits fell 10% for the year ended 30^th June 2012. Former MD Reuben Marambii said that the drop was caused by high interest rates paid on customer deposits during the past six months. Marambii has since been replaced with Munir Ahmed.

The bank made a profit of KES 575 million which is down from KES 640 million the previous year. The Board of directors reported that the fall was likely caused by an increase in operating expenses. The bank also paid 5 times more interest to depositors than it did the previous year.