23 C
Kenya
Saturday, May 30, 2020

KCB set to acquire National Bank as shares suspended

Must Read

When Kenyatta family lost Sh. 1.5 billion in 30 days

Kenyatta Family: In the 30 days to mid March 2020, stocks listed on the Nairobi Securities Exchange were pn...

High cost of smartphones a barrier to growth of mobile internet

Cost of smartphones: The COVID-19 pandemic has reinforced how important connectivity is in the modern world. As it has become...

How my Bonga points saved the day after losing my job

The Kenyan economy spiraled into a whirlwind when the first case of the coronavirus disease (Covid-19) was confirmed. This case was confirmed positive by...

KCB Buys National Bank: The clearest indication that KCB Group is looking to acquire troubled National Bank has emerged.

On Thursday morning, the Nairobi Securities Exchange stopped trading in KCB Group and National Bank shares over a material announcement affecting the two counters.

According to Financial analyst Aly Khan Satchu, the suspension of the shares means that a consolidation of the two banks is in the offing.

“I suspect the merger is a consequence of shortage of capital on the side of National Bank,” Mr. Satchu said.

While KCB’s fortunes have continued to soar and placed the lender as the most profitable bank in the region, NBK on the other end has been operating on extremely thin margins.

For example, in the period ending December 31, 2018, National Bank reported a 98.3 per cent drop in profits. The bank made Sh. 7.007 million in profit compared to Sh. 410.78 million made within the same period in 2017.

In contrast, during the same period, Kenya Commercial Bank made a Sh. 24 billion net profit, a 21.8 per cent jump from Sh. 19.7 billion in 2017 on lower costs and sustained incomes.

If successful, this will be the second bank KCB group is taking over after Central Bank of Kenya accepted the final offer from the bank to takeover Imperial Bank Limited (in receivership).

- Advertisement -

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

160,960FansLike
10,972FollowersFollow
108FollowersFollow
244SubscribersSubscribe
WhatsApp
Telegram

Latest News

Mathira MP Rigathi Gachagua’s bank accounts frozen

A Nairobi court froze accounts in a microfinance institution that is owned by Mathira MP Rigathi Gachagua. This follows...

High cost of smartphones a barrier to growth of mobile internet

Cost of smartphones: The COVID-19 pandemic has reinforced how important connectivity is in the modern world. As it has become more challenging to communicate directly,...

How my Bonga points saved the day after losing my job

The Kenyan economy spiraled into a whirlwind when the first case of the coronavirus disease (Covid-19) was confirmed. This case was confirmed positive by the National Influenza Centre laboratory...

75 percent of Kenya’s small, medium businesses likely to collapse in June

Small Businesses Loans in Kenya: The Central Bank of Kenya has raised alarm that the majority of small and medium businesses in Kenya may...

Alice Michira: What I learned after buying a plot with a bank loan

Buying Land With a Loan: Alice Michira is the co-founder and lead mentor at Mwangaza Africa Consultants, which focuses on business mentorship and coaching,...

More Articles Like This

- Advertisement -