FINANCE

Is KCB planning to buy National Bank?

In Summary

• If successful, this will be the second bank KCB is taking over after Imperial Bank Limited.

• In the period ending December 31, 2018 National Bank reported a 98.3 per cent drop in profits.

National Bank. Photo/MOnicah Mwangi
National Bank. Photo/MOnicah Mwangi

Nairobi Securities Exchange has today morning stopped trading in KCB Group and National Bank shares over a material announcement affecting the two counters.

This pointing out to a possible merger between the two banks. According to Financial analyst Alykhan Satchu, he suspects a consolidation of the two is in the offing.

“I suspect the merger is a consequence of shortage of capital on the side of National Bank,” Satchu said

In the period ending December 31, 2018, National Bank reported a 98.3 per cent drop in profits.

The bank made Sh7.007 million in profit compared to Sh410.78 million made within the same period in 2017.

During the same period, Kenya Commercial Bank made a Sh24 billion net profit, a 21.8 per cent jump from Sh19.7 billion in 2017 on lower costs and sustained incomes.

If successful, this will be the second bank KCB group is taking over after Central Bank of Kenya accepted the final offer from the bank to takeover Imperial Bank Limited (in receivership).

More to follow...