National Bank of Kenya shareholders have approved the issuance of one new share for every 10 shares held by existing shareholders as bonus shares to shore-up the bank’s capital base.
The decision was ratified Friday during the bank’s 48th Annual General Meeting held in Nairobi. The approval will enable the bank raise Sh153.99 million in reserves.
National Bank chairman Mohamed Hassan said the approval showed the level of confidence they have in the future of the bank.
Shareholders also approved an additional 30.79 million shares to be issued at a price of Sh5, bringing the total fully paid-up share capital of the banks to 338.79 million ordinary shares.
“The bank requires additional capital to support its growth,” said the bank’s chief executive officer, Wilfred Musau.
For the full year period ending December 31, 2016, the bank recorded a pre-tax profit of Sh182 million compared to a loss of Sh1.6 billion recorded in 2015.
“The performance was due to better management of cost of funds and increased volumes from clients,” Musau.