Capital Injection
1. What does the KSh5 billion capital injection mean for NBK?
- It means that NBK is now fully compliant with regulatory requirements on capital adequacy. Before this, the bank had been in breach of regulatory capital ratios, indicating material uncertainty that cast significant doubt on the bank’s ability to continue as a going concern.
- The injection, together with belonging to the bigger stronger KCB Group Plc family, bestows significant stability upon the bank.
2. What will the fresh capital go towards?
- In addition to addressing capital adequacy ratios, the fresh capital injection will boost NBK operations, even as we continue with the task of turning around the bank. There are now more funds for lending to customers, as well as other operational needs such as expanding our branch network and revamping our channels.
3. What can customers now expect with this new development?
- The bank now has a stronger balance sheet. We will be deploying this capital to enhance the superior customer experience that they have come to expect. We are also investing in revamping our digital channels as we fire all engines to deliver value to them.
4. Do you intend to inject additional capital after this?
- At the moment, we have a strong enough balance sheet. Such a decision on additional capital will be determined by the needs of the bank, and will be subject (just like the latest injection), to approval of the NBK Board, KCB Group Board and the Central Bank of Kenya.
