Bank creates new shares as it seeks to raise Sh10bn
From left: National Bank MD Munir Ahmed, Treasury Cabinet Secretary Henry Rotich, and chairman Mohamed Hassan during the bank’s rebranding event in Nairobi. Photo/SALATON NJAU
What you need to know:
- The bank rebranded last month and plans to venture into Uganda, Tanzania, South Sudan and Somalia.
National Bank of Kenya has created additional shares as it prepares to raise Sh10 billion in a rights issue next year.
During its annual general meeting Friday, shareholders approved an increase in the authorised share capital of the bank from Sh3 billion to Sh7 billion by creating 800 million new shares.
The bank plans to raise Sh10 billion to expand across East Africa.
Islamic banking
The bank rebranded last month and plans to venture into Uganda, Tanzania, South Sudan and Somalia.
It also plans to open an Islamic banking subsidiary in less than a year.
Bank chairman Mohammed Hassan, said the approval paves the way to start diversifying and propel it into a top bank in Kenya in five years.
Last year, it’s after tax profits declined to Sh730 million due to high interest rates and overreliance on retail, which is susceptible to macro-economic shocks.
It will now pursue the small and medium enterprises and the corporate clients to minimise the risks.
