National Bank of Kenya shareholders have unanimously approved the issuance of bonus shares aimed at shoring up the bank’s capital base.
The decision was ratified during the bank’s 48th annual general meeting held on May 19th 2017.
“We are grateful to our shareholders for approving the bonus share as this shows the level of confidence they have in the future of National Bank,” said National Bank Chairman Mr. Mohamed Hassan.
Following the approval the bank will issue one new share for every 10 shares held by existing shareholders. “This will help us raise Sh153.99 million in reserves which we will capitalize,” noted Hassan.
The Additional 30.79 million shares will be issued at a price of Sh5, bringing the total fully paid-up share capital at National Bank to 338.79 million ordinary shares
The bank recorded a profit before tax of KES. 182 million for the period ending 31 December 2016, marking a significant increase in profits compared to 2015 which stood at a loss of KES 1.6 billion.
The business grew interest income to KES 12.3 billion from KES. 12.2 billion in the same period 2015, representing a one percent increase.
Interest expense declined 27 percent from KES 5.9 billion to KES 4.3 billion this year due to deliberate shift in funding mix from expensive deposits.
According to the bank’s Chief Executive Officer, Wilfred Musau, the bank requires additional capital to support the growth.