NBK shareholders yet to receive dividends

By Jackson Okoth

Shareholders of National Bank of Kenya (NBK) will have to wait for another two years before they receive any dividends from the company.

The bank’s Managing Director Reuben Marambii made this disclosure yesterday, during the company’s annual general meeting (AGM) at KICC.

Its profit after tax increased from Sh1.12 billion to Sh1.24 billion in the year ending December 31 last year, reducing the bank’s accumulated debt from Sh2.6 billion in 2007 to Sh1.4 billion last year.

"The improved profits made by the bank has gone into reducing the accumulated deficit in order to pave way for dividend payment," Marambii told shareholders attending the bank’s 40th AGM.

The bank is hopeful that it will offset the remaining deficit this financial year.

"Our balance sheet shows a deficit of Sh1.3 billion. We must make profit before we can start paying dividends.

"Therefore, next year’s profit will be available for dividend payment when we clear this deficit this year," said Marambii.

While NBK has finally pulled out of its huge non-performing debt portfolio, the bank has been a target for predators, keen to acquire a stake in the bank when the Government offloads its shares through privatisation.

On the list of frontrunners eyeing a share of the bank is National Social Security Fund, which owns 48 per cent of NBK.

Privatisation process

"We are in the early stages of the privatisation process. The lead transaction advisor has only been in the office for three weeks," Marambii told The Standard.

PricewaterHouseCoopers, the lead transaction advisor is yet to submit its reports.

Its mandate is to advise the Government on the best way of disposing off its shares in the bank, either through a public share offer, sale to a strategic investor or a combination of both.

While privatisation of NBK was factored into the 2008/09 Budget, the Government has not been able to achieve this target.

 

 

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