National Bank of Kenya (NBK) has delisted from the Nairobi Securities Exchange (NSE) effective Thursday following full acquisition by KCB Group.
This means shares of the company will stop trading at the Nairobi bourse.
"Notice is hereby given on the de-listing of National Bank of Kenya (NBK) from the Nairobi Securities Exchange with effect from November 25, 2021. The de-listing follows the successful takeover of 100 per cent of NBK by KCB Group Plc and NBK shareholders’ approval," NSE said in a statement on Monday.
"The de-listing is approved and issued by the Capital markets Authority (CMA) pursuant to Regulation 22(4) C of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002," it added.
Central Bank of Kenya (CBK) in 2019 approved KCB’s takeover of NBK and later hastily retreated from an initial plan to absorb NBK into its operations fearing loss of deposits and customers, opting to let it operate as a standalone subsidiary.
NBK’s dwindling fortunes have since revived and last week announced a Sh1.1 billion net profit for the nine months to September on higher interest income in a sharp turnaround of fortunes.
The KCB Group subsidiary’s profit after tax grew 12 times from Sh87 million in a similar period last year as the bank significantly grew interest income by 17 per cent to Sh6.1 billion.
Meanwhile, gross non-performing loans reduced to Sh27.9 billion from Sh29.3 billion while net loans and advances grew 22 per cent to Sh65 billion in the period.
"Despite the ongoing economic impact of Covid-19, our operating income increased 14.4 per cent to close Q3 at Sh7.6 billion. The low levels of credit provisions also resulted in an increase in profit after tax of 1126 per cent," said NBK Managing Director Paul Russo.