National Bank of Kenya (NBK) has been delisted from the Nairobi Securities Exchange (NSE) following its successful acquisition by the Kenya Commercial Bank Group (KCB)
NSE said the move becomes effective on November 25, after approval by the bank’s shareholders
KCB Group Plc acquired NBK in September 2019 through a share swap, but the bank continues to operate as a stand-alone subsidiary
National Bank of Kenya (NBK) is set to delist from the Nairobi Securities Exchange (NSE) later this week, following its successful acquisition by Kenya Commercial Bank Group (KCB Group). NBK will delist from the NSE following its acquisition by KCB Group. In a notice, the Exchange announced the move, which will take place on November 25, after approval by the bank’s shareholders. “The de-listing follows the successful takeover of 100% shareholding by NBK by KCB Group PLC,” NSE said in part. CMA’s nod
The move is in line with the law as per Capital Markets Authority (CMA)’s regulations.
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KCB Group Plc acquired NBK in September 2019 through a share swap, and the bank operates as a stand-alone subsidiary.
Before the acquisition, NBK, which was established in 1968 by the government, struggled with mounting debt and was operating below the statutory minimum capital requirements.
Other companies that have delisted in the past include Kenol Kobil and Atlas Development and Support Services Limited. Performance
The delisting comes after the bank posted KSh 1.1 billion in profit after tax for the nine months ending September 2021, representing an 1126% increase from KSh 87M in a similar period last year.
As reported by TUKO.co.ke , the bank said the performance was driven by increased income from loan interest and foreign exchange trading coupled with lower loan loss provisions and benefit from a change in the corporation tax rate to 30%.Commenting on the results, NBK Managing Director Paul Russo said that despite the ongoing economic impact of COVID-19 , the bank’s operating income increased 14.4% to close Q3 at KSh. 7.6 billion.He added that the low levels of credit provisions also resulted in an increase in profit after tax of 1126%.Customer deposits grew to KSh 115 billion, as net loans and advances rose by 22% to KSh 65 billion.Source: Tuko