Is it that other banks are 'cooking' their results, or there is a big problem at NBK?

I had thought the KANU era bad loans had been struck off the books, or what is eating this bank?

The declining lending rates & yields in the money markets compressed their NIM...but things should improve going forward if only those NPL's will not come & haunt them...I'm expecting huge impairement charges in the P&L across the banking sector going forward....I think thats whats tempering optimism towards banks despite stellar Q1 earnings.

Most banks have recorded an Increase in NPL with some having some huge exposures.....eg Equity bank...NBK has tried, especially when you look at NPL they are all covered, no exposures....The bank has no debt...Other banks have had to borrow huge amount to shore up liquidity....IMHO This bank is destined for greatness If it were not for the upcoming right Issue, where I think the prices might fall drastically,I would buy this stock today.

@selah, well put. from where i sit its a transforming entity and save for the rights issue which will definately supress the price it remains a buy. The reduction in loans is a strategic move meant to reduce NBKs reliance on the personal unsecured loans which constitute about 70% of its loan bk. The increase in HTM is too minimal and could be explained outstanding government debts which are always converted to HTM debt atleast for NBK. there is talk of rebrading which is set for this week and i bet Munir will take the opportunity to outline his strategy.

comrade cde, banks main operation is financial intermediation hence the increase in customer deposits was reflected as so in the cashflow statement. In addition, check the Balance Sheet and note the increase in customer deposits and net purchase of bonds (not bond sale). ... So far, Munir has displayed signs of running without a strategy. I wait to see his long overdue strategic plan during the coming rebranding