The country's
largest financial institution, the National Commercial Bank (NCB) is reporting
another big increase in profit.
For the quarter ended December 31, the bank's net profit increased by 28% to $2.4 billion when compared to the corresponding quarter last year.
The increase was due in part to the rise in interest rates.
NCB says net interest income increased by 13% to $4.1 billion owing to increases in domestic interest rates.
However, the bank cautions that this could have a negative impact in coming months.
NCB says it should continue to benefit from the current interest rate environment, however, should high interest rates persist, especially in the current economic climate, loan delinquency could increase significantly.
Loans, which now account for 29% of total assets, increased only 2.4% to $84 billion during the quarter owing to a slow down in loan demand.
The bank says despite the slowdown, the figure represents a 40% growth year over year.
For the quarter ended December 31, the bank's net profit increased by 28% to $2.4 billion when compared to the corresponding quarter last year.
The increase was due in part to the rise in interest rates.
NCB says net interest income increased by 13% to $4.1 billion owing to increases in domestic interest rates.
However, the bank cautions that this could have a negative impact in coming months.
NCB says it should continue to benefit from the current interest rate environment, however, should high interest rates persist, especially in the current economic climate, loan delinquency could increase significantly.
Loans, which now account for 29% of total assets, increased only 2.4% to $84 billion during the quarter owing to a slow down in loan demand.
The bank says despite the slowdown, the figure represents a 40% growth year over year.
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