The Nairobi Securities Exchange(NSE) has issued a public notice on the delisting of the National Bank of Kenya(NBK) from the bourse from November 25th 2021.
This follows the successful takeover of 100% shareholding of the lender by KCB Group Plc and approval of the transaction by NBK Shareholders.
NBK was suspended from trading at the NSE three years ago
Shares of the lender were suspended from trading on the Nairobi Securities Exchange since the close of trading on Tuesday, October 15, 2019, when it was trading at KSh 4.12 per share.
NBK recorded a net profit of KSh 1.1 billion in the nine months ending September 2021, representing an 1126% increase from KSh 87Million in Q3, 2020.
This was driven by increased income from loan interest and foreign exchange trading coupled with lower loan loss provisions and benefit from change in the corporation tax rate to 30%.
“In a period of unprecedented challenges to our business, the banking sector and the economy at large, I am extremely proud of the excellent results that we delivered for Q3. I am particularly happy because of the actions we have taken to support our stakeholders during what has been a rapidly evolving business environment,” said NBK Managing Director Paul Russo.
Despite the ongoing economic impact of COVID-19, NBK operating income increased 14.4% to close Q3 at KSh 7.6 billion. The low levels of credit provisions also resulted in a strong performance.
NBK was incorporated in 1968 and soon became a dominant bank in the public sector with a loyal clientele of customers.
In 1994, the Government reduced its shareholding by 34% or 40 Million shares through an initial public offer and was subsequently listed at the NSE.
The Government of Kenya subsequently did a secondary IPO and further offloaded another 40 million shares resulting in NSSF(48%), National Treasury(22.5%) and the Public( 29.4%).
The Bank enjoyed considerable competitiveness until 1996 when it began to experience turbulence and huge non-performing loans, held mostly by state operatives of the then and past regimes.
It was after its financial troubles that KCB made a 100% takeover bid that, if successful, would lead to the delisting of NBK.
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