Longest serving CEO of Britam Benson Wairegi to depart in December after 4 decades

KENYA – Britam Holdings Limited, financial services group, has announced that its chief executive, Benson Wairegi, will depart in December after four decades in the financial services company, making him the longest serving CEO among firms listed on the Nairobi bourse. Mr Wairegi, 67, told the Business Daily Monday that he will not seek a new term when his three-year contract ends in December. “The board is seized of the matter. They have engaged and started a search for my successor. Whether it’s internal or external (replacement), that’s now for…

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Stanbic Bank records a 37% decline in earnings for the first half of 2020

KENYA – Stanbic Bank Kenya, a financial services organization, has announced a 37 per cent decline in its half year earnings to KSh2.6 billion (US$24m) down from KSh4.1 billion (US$37.85m) last year. The sharp decline in earnings is attributable to a decline in operating income along with higher provisioning on expected credit losses from customer defaults. The lender’s net operating income in the period fell by 11.7 per cent to KSh11.3 billion (US$104.32m) from KSh12.8 billion (US$118.17m) from a shrink in both interest income and non-interest funded income (NFI). Net…

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NBK posts US$1.7m profit before tax for the first year of 2020

KENYA – National Bank of Kenya (NBK), a commercial bank, has posted KSh186million (US$1.72m) in profit before tax for the first half of the year ending June, representing a 62 percent increase from a similar period last year. The Bank’s performance, despite the effects of the COVID-19 pandemic, was driven by a growth in the loan book and enhanced returns from investments in government securities. However, profit after tax reduced from KSh107 million (US$0.99m) to a loss of KSh381 million (US$3.52m) due to a one-off tax adjustment after the recent change in corporate tax. “We remained resilient during the first half of…

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Co-op Bank half year net profits drops by 3.6% due to COVID-19 pandemic

KENYA – Co-operative Bank, a commercial bank, has announced that its half-year net profits have dropped by 3.6 per cent to KSh7.2 billion (US$66.56m) on account of higher loan loss provisioning in a Covid-19 environment. This happened despite an increase in revenue from mainstay lending business. Net earnings dropped from KSh7.5 billion (US$69.34m) posted in a similar period last year, making Co-op the latest top lender to post a drop in profit on increased provisioning for bad debts linked to the infectious virus that struck Kenya mid-March. Net interest income…

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Cooperative Bank gets a nod to acquire 90% stake in Jamii Bora Bank

KENYA – The Central Bank of Kenya has announced the acquisition of 90 percent of the shareholding of Jamii Bora Bank Limited by the Co-operative Bank of Kenya Limited effective August 21st, 2020. The banking regulator said in a gazette notice that the deal has received all the required regulatory approval, the latest being by National Treasury on August 4. Co-op Bank early March opened talks to buy a majority stake in Jamii Bora Bank. The two parties valued the deal at KSh1 billion (US$9.26m), which was endorsed by Jamii…

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