National Bank of Kenya Targets Fivefold Jump in Lending by 2017
National Bank of Kenya Ltd. plans to increase loans fivefold by 2017 as the state-run lender seeks to expand in neighboring African countries.
The bank plans to increase lending to 150 billion shillings ($1.77 billion) over the next five years, while boosting deposits to more than 200 billion shillings from 55 billion shillings, Managing Director Munir Ahmed told reporters after the company’s annual general meeting in Nairobi today.
National Bank, the only publicly traded lender in Kenya to report a drop in profit in 2012, is considering expansion in Uganda, Tanzania, Ethiopia and Somalia, Ahmed said. The expansion will be funded by a 10 billion-shilling rights offer next year, which was approved by shareholders today.
Shareholders also approved increasing the bank’s share capital to 7 billion shillings from 3 billion shillings by issuing 800 million new shares, Chairman Mohamed Hassan said.
To contact the reporter on this story: Eric Ombok in Nairobi at email@example.com
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org