The National Bank of Kenya (NBK) has downplayed its likely sale by the KCB Group assuring its customers that all was well and business operation was usual.
“We want to assure our customers and other stakeholders that National Bank of Kenya remains fully operational,” NBK said in a terse statement on Wednesday morning, “All our branches remain open for business, and this does not affect the bank’s day to day operations.”
KCB Group acquired NBK five years ago, and has since struggled to fix the many issues it inherited, including significant capital constraints and non-performing loans. Media reports on Wednesday indicated that KCB has entered into a deal to sell the struggling subsidiary after notifying industry regulator, the Central Bank of Kenya.
KCB Group is expected to announce its full year 2023 Financial results later today in an event that it is likely to reveal more about the future of National Bank, which has been the banking group’s only non-performing subsidiary.
In the half -year 2023 financial results, KCB Group recorded a Profit After Tax of KES 16.1 Billion, representing a decline of 17.9 per cent compared to the same period in 2022, which recorded KES 19.6 billion.
The lender said the decline was attributed to multiple factors, including an increase in loan loss provisions by 137.2 per cent, coupled with a KES 3.8 billion loss in National Bank of Kenya (NBK).
KCB Group Records 17.9% Decline Net Profit in First-Half of 2023 – Kenyan Wall Street
