PBT DOWN by 4% to Kshs 467,163K

PAT DOWN by an unprecedented 41.8% to Kshs 231,476K .

If NBK were to replicate this performance i.e. make 4 times the current PAT, this would result in a massive drop in the full year results.

Marambii had better pull up his socks!

Interestingly, NBK grew their Balance Sheet by a fairly impressive 13% to 67.8B between Dec 2010 and March 2011. Note that this is ahead of the likes of NIC Bank. They have also managed to grow their loan book by 9 billion from 14.5B in March 2010 to 23.5 B as of March 2011 and reduced their Govt securities by about 10B from 28.7B to 18.8B.

The 'loss' is due to a write-down of Bonds Held for Trading. The core business has done well. I have a strong feeling some banks are going to be hurting in 2Q 2011 due to losses in their Bond Portfolios.

. Clearly NBK wont make you money in 2011 and NSSF wants more board seats...i see boardroom wrangles there soon.

the drop in PBT has greatly been attributed to drop in non interest income and increase in operational cost which Marambii should cap before it gets out of control.

Growth in loan advances and customer deposit is a good sign given that the company has tried to reduce its Non performing loans compared to last year.

The management blame revaluation of government bonds for this poor performance which seems to have dropped by about 10 billion.

Given recent reports indicate small banks have performed poorly this year due to the same reason lets hope the management will get a magic bullet to shore up this losses in the second Q.