Connect with us

Banks

Treasury and NSSF Endorse KCB Takeover Proposal

News Team

Published

on

The majority shareholders in the National Bank of Kenya – the National Social Security Fund (NSSF) and the National Treasury – are lending their support for the bank’s acquisition by KCB Group.

Aside from the two institutions holding a combined stake of 93.23 percent in NBK, are also among KCB’s largest investors.

“Furthermore KCB’s two most significant shareholders happen to be the two most significant shareholders at NBK. It is also the government policy to support mergers within the banking sector in order to create strong players who will support the realization of Vision 2030,” NBK’s chairman Mohamed Hassan wrote to shareholders in a circular.

“Therefore, the board and management of NBK are of the view that, subject to the agreement of terms and shareholders and regulatory approvals, the successful completion of the proposed transaction would be of great benefit to all the customers and stakeholders of NBK and KCB.”

The chairman noted that it was the board’s unanimous recommendation for shareholders to vote in support of the deal.

The lender says that on the basis of different scenarios, the proposed takeover has each share valued at either Sh3.78, Sh4, and Sh4.49.

“The information on the strike price is yet to be advised, but it is expected that this will be calculated based on the volume weighted average share prices for the immediate preceding 90 calendar days (or such other period that will be advised) up to and including the date preceding the date of the offer’s statement (May 6, 2019),” NBK said.

Following the success of the deal, NBK investors will gain shares equal to a 4.59 percent interest in KCB.

Comment using Facebook

Kenya's most incisive and informative platform to learn about business news, technology, markets, companies, startups, leadership advise, curated business and industry opinion, and affluent lifestyles.

Banks

Stanbic Bank Half Years Profit Grows to Sh 4.1B

News Team

Published

on

Stanbic Bank has reported a 14 percent jump in profit after tax in Half Year results for the year ending June 30, 2019, majorly driven by loans and deposits.

The increase in profit has been attributed to increased lending to customers and efficiency.

During the same period, the bank’s loan portfolio grew by 19% to Sh161.9 billion from Sh136.5 recorded in the period ending June 30, 2018.

Subsequently, the firm’s customer deposits were up by 20 per cent closing at Sh201.6 billion from Sh167.3 billion in last year’s performance.

“The results are a reflection of the unstinting support we continue to get from our clients and partners, despite operating in what remains to be a challenging business environment,” said the company CEO Mr. Charles Mudiwa.

The bank attributes its growth to its change in the regulatory environment which affected both the insurance segment and banking.

“We have managed to navigate the complex operating environment by abiding to our strategy which remains pegged on income diversity and resilience,” adds Mr. Mudiwa.

Abraham Ongenge, the bank’s Chief Financial Officer notes that the bank has learnt how to deal with bad loans which have improved their shares.

“We are now more informed and are seeing efficiencies in credit scoring through new data on client behaviour,” he said.

Continue Reading

Banks

Gerald Warui Appointed As Equity Bank’s New Managing Director

News Team

Published

on

Equity Bank Kenya has appointed Gerald Warui as its fourth Managing Director pending approval by the Central Bank of Kenya. Warui is set to replace the outgoing Polycarp Igathe.

In a statement to the media, the Bank noted that “To ensure a smooth transition of operations Mr Igathe will hand over his duties to Mr Warui before his departure at the end of August,” read the statement.

“The appointment of Gerald Warui follows the board’s acceptance of the resignation of Polycarp Igathe who leaves the position at the end of August,’’ the statement added.

Igathe will leave the bank at the end of August to rejoin his previous employer, Vivo, to take up a newly created role of Executive Vice President of Sales and Marketing for Africa.

Mr. Warui, an insider who has served Equity bank for 21 years, is a career banker and has over 30 years’ experience in banking.

He holds an Executive Master of Business Administration degree from Jomo Kenyatta University of Agriculture and Technology (JKUAT) and is also a Certified Public Accountant CPA (K), and a graduate of Advanced Management Program offered by IESE Business School, Barcelona, Spain.

“The Board congratulates Mr. Warui on his appointment. The Board thanks Mr. Igathe for his dedicated and impactful service to Equity and wishes him well in his new role with one of the Equity’s most valued partners and look forward to deepening the existing relationship across the continent,” reads the statement from the bank.

Continue Reading

Banks

African Development Bank Approves $8M Loan to Credit Bank for SMEs

The objective of the facility is to provide access to finance to SMEs, the “missing middle” in Kenya, thereby reducing their financing gap.

News Team

Published

on

The African Development Bank Group board last Wednesday approved a $8m loan targetted financing to Kenya’s Credit Bank for lending exclusively to small and medium enterprises (SMEs).

The loan is set to mature with five years maturity with a two-year grace period. However, the interest rates was not discoled.

In a statement, AfDB said that the loans will be disbursed to Kenyan SMEs in construction, agriculture, renewable energy and manufacturing sectors.The loan will be used to finance businesses in construction, agriculture, renewable energy and manufacturing.

Credit Bank is a privately-owned commercial bank in Kenya. By end of 2018, the bank had a total assets of 17.81 billion Kenyan shillings ($173m dollars).

“It is financially sound and, as an adequately capitalized tier-3 financial institution, has a strong track record of SMEs, providing working capital and trade finance facilities. As such it is well-positioned to succeed in providing innovative longer term financial solutions to SMEs along several value chains including strategical financial solutions in Kenya,” Stefan Nalletanby, Bank Group director for financial sector development, told the Board.

The objective of the facility is to provide access to finance to SMEs, the “missing middle” in Kenya, thereby reducing their financing gap.

The facility’s proceeds will support transactions aimed at improving their productive capacities thereby enhancing entrepreneurship, job creation, income generation, and sustainable growth, leading to a multiplier effect on the country’s economic growth, according to the Bank.

Credit Bank joins the list of local lenders that are taking substantial loans from global funds such as the International Finance Corporation (IFC) and European Investment Bank, attracted by relatively more favourable terms of the debt, including lower interest rate and longer maturity.

Continue Reading

Trending

Copyright © 2019 INVERSK MAGAZINE. Developed by ITIPS