National Bank, a subsidiary of KCB Group Plc. posted a pre-tax of Sh 624.86 Million at the end of September 2019 compared to Sh 561.69 million over the first nine months of 2018.
Total interest income from loans and advances, government securities, deposits and placements with other institutions and other interest income was Sh 6.6 billion from Sh 6.3 billion last year.
The non-performing loan exposure of National Bank decreased from Sh 890 million in September 2018 to Sh 186 million at the end of nine months of this year, in what could be an impact following the acquisition of the state-owned bank by KCB Group.
Beginning October, NBK has been operating as a subsidiary of KCB Group. This expected to last not more than two years as plans to fully assimilate it are put in place.
Already KCB Group has appointed Paul Russo as managing director NBK in the period. During the transition, KCB Group has indicated it will not interfere with the daily operations of its new subsidiary. The appointment of Russo, however, gave the strongest hint that it would reorganize its management.
KCB Group priced National Bank of Kenya at a steeply discounted Sh.5.6 billion with the sale being pegged on its ambition of consolidating the market position.
NBK now joins the strong KCB heritage and will operate as a subsidiary of KCB for two years, after which it will be integrated into KCB Bank Kenya Limited, the largest indigenous bank by assets in the East African region.
