National Bank of Kenya issues profit warning a day after suspending six executives

National Bank of Kenya Chairman Mohamed Hassan (left) with Non-Executive Director Francis Atwoli (centre) and the bank’s suspended CEO Munir Ahmed during a press briefing last year. [PHOTO: FILE/STANDARD]

NAIROBI: A sharp increase in bad debts in the fourth quarter of 2015 has forced the National Bank of Kenya board to send home six top managers including CEO Munir Sheikh Ahmed to allow for an audit.

Yesterday, the board in a statement warned that due to the bloated non-performing loans portfolio, NBK will see its full-year 2015 results dip by at least a quarter. The lender said its full-year earnings, which must be released before close of this month (today), will shrink by at least one quarter from the previous year, further deepening the lender’s troubles.