KCB Group’s proposal to acquire 100% of the issued ordinary shares of National Bank has been approved by the lender’s shareholders. This approval follows the offer made by KCB Group on April 18, 2019, in an ongoing strategy to explore existing business opportunities and strengthen the deposit base and lending capacity.
In a transaction subject to regulatory and NBK shareholders approvals, KCB will acquire the Shares of NBK by way of a share swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB.
National Bank’s strong deposit franchise as well as its wide branch network is an attractive commercially viable proposition as KCB seeks to increase cost efficiencies due to economies of scale and boost transactional revenue through leveraging technology, giving it an upper hand in the sector.
During the 2018 Annual General Meeting (AGM) held in Nairobi earlier this week, the shareholders further approved the final dividend of KShs 2.50 per share as recommended by the Board. This brings to KShs.3.50 the total dividend per share and KShs. 10.7 billion as total dividend for the year.
The dividend will be paid on or before July 30, 2019, to shareholders on the register as of the close of business on April 29, 2019. “We delivered on our promises for 2018 on the back of a definite lending strategy and an aggressive digital banking proposition,” said Chairman A.W Kairu. “This success was not without headwinds such as the aftermath of the 2017 electioneering period in Kenya and changes to the regulatory landscape, both somewhat redefining the business growth trajectory”, said Mr Kairu.
The Kenya business played an anchor role, contributing 93% of the Group’s profit after tax of KShs 22.4 billion, a growth of 17%. The international businesses collectively grew by 64% and together with KCB Capital and KCB Insurance Agency are targeted to contribute at least 20% of the Group’s profit by 2020.
“The overall Group performance culminated in the elevation in market share on loans and advances to 14.6% and customer deposits to 18.0%. The loan growth was boosted by advances of over KShs. 54.4 billion through our mobile products.
Concurrently, the transaction concentration mover further onto the non-branch channels, comprising 91% of the total transactions during the year” said KCB Group Chief Executive Officer and Managing Director Joshua Oigara. “Our focus is to proactively support our customers’ growth, enabling businesses to thrive and economies across the East African region to prosper, and ultimately, the realization of financial ambitions,” he added. KCB Group assured its shareholders of the strong future driven renewed investor confidence and improved performance across all businesses.