Chase Bank chairman Zafrullah Khan and the bank’s Group Managing Director Mr. Duncan Kabui have stepped down from their positions.
The two stepped down following an understatement of insider loans. However, Chase Bank’s chief executive officer Mr. Paul Njaga remained in office.
This came as the bank posted a full year net loss of Sh. 849 million in the 2015 financial year from a profit of Sh. 2.3 billion posted in the 2014 financial year. Following the resignations, Chase Bank appointed Muthoni Kuria as the new chairman.
Chase Bank yesterday restated its financial results. The restated financial results showed that insider loans — money advanced to directors, shareholders, associates and employees of a bank — stood at Sh13.62 billion last year against the Sh5.72 billion it reported on March 31. This means it had under-reported insider loans by a whopping Sh8 billion.
Earlier today, Central Bank of Kenya governor Paul Njoroge had termed rumours that Chase Bank was facing an impending collapse as false and malicious.
