KCB Converts Ksh3.45B NBK Debt to Equity

KCB initially injected Ksh5 billion into NBK when it purchased the bank

Kenya Commercial Bank (KCB) converted a Ksh3.45 billion loan to the National Bank of Kenya (NBK) into equity in the subsidiary, the bank’s latest financial disclosures confirm.

The move enabled NBK to meet core capital ratio requirements after being in default in recent years. It increases the total cash injection by KCB into Equity to Ksh8.45 billion.

KCB injected Ksh5 billion into NBK when it purchased the bank in 2019.

“During the year, the parent company KCB Group approved the conversion of subordinated debt (Sh3.45 billion), which was classified as Tier II capital to equity. The conversion resulted in NBK complying with regulatory ratios with regards to core capital as at 31 December 2021.”

“The bank is implementing other internal strategies aimed at raising organic capital including rigorous bad debt collection and balance sheet growth to boost profitability which will ensure full compliance with the capital ratios,” NBK noted.

NBK posted Ksh1.1 billion in profit after tax for full year 2021. It represents a 431 percent increase from 2020.

READ>>NBK Posts Ksh1.1 Billion In Full Year Net Profit

The growth was driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.

NBK’s core capital to total risk-weighted assets rose to 12.9% by the end of 2021, 2.4 percentage points above the statutory minimum of 10.5 percent. In 2020, it stood at 8.7 percent.

Total assets grew by 16 percent to Ksh146 billion in 2021, majorly from net loans and advances, which rose by Ksh12 billion to hit Ksh67 billion.

“We are on a steady growth trajectory and anticipate continued growth by supporting our clients and finding opportunities within the current environment. The Bank has a strong capital and liquidity base to support growth of business and especially through our digital offering. We have therefore, embarked on a calculated strategy towards ensuring that we provide customer centric and timely solutions to our client segments especially in the SME sector,” stated NBK Managing Director Paul Russo.

READ>>NBK De-Lists From Stock Market After KCB Takeover

Latest

Madatally Manji: The First Man to Manufacture Biscuits in Kenya

House of Manji has become a household name in Kenya and the East Africa region in the biscuits, pasta and confectionery industry.

Mumias Sugar Return Ignites a Price War in Cane Harvesting

Mumias Sugar Company opened its doors on Friday, 1st December, 2023 to receive cane from farmers as operations resumed at the giant sugar miller after years of silence.

Upskilling: 5 Ways to Remain Competitive in Your Career

It is not surprising that HR professionals are constantly upskilling either to remain competitive in their current roles or to pursue new opportunities.

Odibets Gives Out 100 Goats Daily in Betting Promotion

Each goat from Odibets will be worth Ksh5,000 and will be rewarded to the lucky customers via M-Pesa.

Follow Us

Newsletter

Don't miss

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.

New Spotify EQUAL Artist Qing Madi Talks Music and Dreams

Heavily influenced by her cultural background and the lyrical arrangements of Kendrick Lamar, the versatile Nigerian prodigy is shaping the future of music with her unique genre-bending fusion of Afrobeats, Pop, Soul and R&B.
MARTIN SIELE
MARTIN SIELEhttps://loud.co.ke/
Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

Madatally Manji: The First Man to Manufacture Biscuits in Kenya

House of Manji has become a household name in Kenya and the East Africa region in the biscuits, pasta and confectionery industry.

Mumias Sugar Return Ignites a Price War in Cane Harvesting

Mumias Sugar Company opened its doors on Friday, 1st December, 2023 to receive cane from farmers as operations resumed at the giant sugar miller after years of silence.

Upskilling: 5 Ways to Remain Competitive in Your Career

It is not surprising that HR professionals are constantly upskilling either to remain competitive in their current roles or to pursue new opportunities.

LEAVE A REPLY

Please enter your comment!
Please enter your name here