NSSF, Treasury to give National Bank Sh4.2b cash boost

NAIROBI, KENYA: National Bank of Kenya (NBK) is set for a capital boost after key shareholders committed to pumping in Sh4.2 billion. The bank confirmed yesterday that National Social Security Fund (NSSF), which owns 48.06 per cent, and National Treasury (22.5 per cent), had agreed to recapitalise the bank in the next six months.

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The news came on the back of NBK restating its 2016 books to post a Sh410 million profit in 2017. Original statement While in its original results for 2016 the bank had made a profit of Sh162.2 million, it has restated the books to trim the profit by 56.3 per cent.

The lender said Treasury had written to Central Bank of Kenya, making the commitment to provide a long-term solution on the capital position to help meet statutory requirements. Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens.

Text the word 'NEWS' to 22840 The capital injection will be in the form of a subordinated loan to boost tier II capital. The letter indicates that the core capital injection will be fast-tracked and is expected to be completed within six months. NBK Managing Director Wilfred Musau said in a statement the capital injection would bolster the lender’s focus on improving customer transactions and managing operational and market risks. “The solid commitment made by our major shareholders to tackle the recapitalisation is an overt approval of the measures taken in the financial year under review to sustain growth.”

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During the period under review, the bank’s net interest income fell by 14 per cent to Sh6.7 billion to reflect the impact of reduced margins due to the interest rate cap regime.

National Bank CEO Wilfred Musau (PHOTO: Standard)By Patrick Alushula

NSSF, Treasury to give National Bank Sh4.2b cash boost By Patrick Alushula | Published Thu, March 29th 2018 at 11:25, Updated March 29th 2018 at 11:31 GMT +3 SHARE THIS ARTICLE Share on Facebook Share on Twitter National Bank CEO Wilfred Musau (PHOTO: Standard) NAIROBI, KENYA: National Bank of Kenya (NBK) is set for a capital boost after key shareholders committed to pumping in Sh4.2 billion. The bank confirmed yesterday that National Social Security Fund (NSSF), which owns 48.06 per cent, and National Treasury (22.5 per cent), had agreed to recapitalise the bank in the next six months. ALSO READ: Billions paid to firm without NSSF's approval The news came on the back of NBK restating its 2016 books to post a Sh410 million profit in 2017. Original statement While in its original results for 2016 the bank had made a profit of Sh162.2 million, it has restated the books to trim the profit by 56.3 per cent. The lender said Treasury had written to Central Bank of Kenya, making the commitment to provide a long-term solution on the capital position to help meet statutory requirements. Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word 'NEWS' to 22840 The capital injection will be in the form of a subordinated loan to boost tier II capital. The letter indicates that the core capital injection will be fast-tracked and is expected to be completed within six months. NBK Managing Director Wilfred Musau said in a statement the capital injection would bolster the lender’s focus on improving customer transactions and managing operational and market risks. “The solid commitment made by our major shareholders to tackle the recapitalisation is an overt approval of the measures taken in the financial year under review to sustain growth.” ALSO READ: Bank boss denies claims of sexual harassment During the period under review, the bank’s net interest income fell by 14 per cent to Sh6.7 billion to reflect the impact of reduced margins due to the interest rate cap regime. RELATED TOPICS: National Bank NSSF
Read more at: https://www.standardmedia.co.ke/business/article/2001274919/nssf-treasury-to-give-national-bank-sh4-2b-capital