National Bank holds 45th AGM

National Bank holds 45th AGM

There are 1.135 billion preference shares outstanding, representing Ksh5.675 billion of capital.

Nairobi, May 30, 2014

National Bank shareholders have today unanimously voted to redeem Preference Shares sitting on its balance sheet from the proceeds of the upcoming Rights Issue. There are 1.135 billion preference shares outstanding, representing Ksh5.675 billion of capital. These are held by the National Treasury and the National Social Security Fund (NSSF).

Speaking at the Bank’s 45th Annual General Meeting held today, National Bank CEO & MD, Munir Sheikh Ahmed said the redemption exercise would significantly improve the value to the owners of the company especially to the Ordinary Shareholders. “In the current scenario, most of the dividends declared go to the preference shareholders because they share the balance after preference dividends are paid pari passu. The Bank CEO & MD said that the bank intends to use part of the proceeds of the forthcoming Rights Issue to fund the redemptions. Rights Issue National Bank plans to raise Ksh13 billion through the Rights Issue, subject to regulatory approvals. This is expected to boost its capital significantly and more than offset any reduction in capital base occasioned by the redemption of the participating noncumulative preference shares. However most of the proceeds of the Rights Issue will fund balance sheet growth required to enable National bank achieve its strategic ambition of becoming a top tier bank by 2017.

The Bank is seeking additional funds to boost its balance sheet, finance expansion and growth programme in Kenya and the region. Specifically the funds raised will be used to grow the balance sheet; meet enhanced statutory capital requirements, invest in branch and network expansion within the country and regionally; invest in product innovation; complete technology upgrade and capabilities; strengthen credit risk management capacity and restructure the bank’s cost base. “At the current growth rate, the Bank requires capital to support further business growth within the current year and to this end our shareholders approved a resolution for the Bank to raise additional capital through a Rights Issue,” said Mr. Ahmed. 2 Transformation Strategy The Bank has been executing a comprehensive Five Year Strategic Transformation Program over the past 12 months starting in March 2013 whose goal is to make National Bank a top tier bank in Kenya by 2017.

For the past one year, the bank has recorded impressive financial performance, an indication that the Transformation Programme is bearing the desired results. “We successfully rebranded the bank in May 2013 as part of the Transformation Programme, created new divisions of Corporate & Institutional and Retail & Business units to drive the business and rationalized support divisions and departments. We also expanded our distribution network throughout the country by opening 16 branches, deployed 46 additional ATMs and other channels including 1030 Agents, mobile banking and internet banking.

The Bank reported a pretax profit of Ksh1.81 billion for the year ending 31st December 2013, up from Ksh1.16 billion in 2012. This represents a 57% growth. Total comprehensive income for the year was Ksh1.79 billion up from Ksh0.74 billion a 143% growth from 2012. Loans and Advances to customers increased to Ksh47.85 billion in 2013 from Ksh29.70 billion, a 61% increase. Total assets increased by 38% to Ksh92.56 billion in 2013 from Ksh67.18 billion in 2012, while customer deposits increased by 42% from Ksh55.45 billion in 2012 to Ksh78.82 billion in 2013.

For any queries, please contact

Rebecca Gikuru Head,

Corporate Affairs Tel: 2828630, 2226471, 0711038630

Email:[email protected] 


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