National bank has realised a 46% improvement in half year profit before tax to Ksh.902Million compared to Ksh.617Million during the same period last year.

Total operating income increased by 16% to Ksh.2.523B from Ksh2.177B the same period last year. During the period in review, the bank reduced its provision for bad and doubtful debts from Ksh.350million in 2007 to Kshs.240million.

Customer deposits grew to Ksh.34.021B up from Ksh.32.693B.

The Bank is embarked on a two-year strategic plan aimed at eliminating the deficit in reserves through profitability and pay dividends to shareholders. For the past 11 years, NBK shareholders have not been paid dividends due to the deficit which now stands at Ksh.2B.

The bank also plans to push ahead with an expansion programme to open up branches in all provincial headquarters as well as refurbish the existing branches.

NBK’s recovery has prompted the government through the Cabinet to approve a two-phase restructuring that will see the entry of a strategic investor and the offloading of additional shares to the public.

NSSF controls 48% shareholding and for the first phase of the restructuring plan, it will be selling 25% of this stake to the strategic investor with an intention to strengthen the Bank’s management and capital base.

The second phase will see the Government sell 17% of its shares and 23% of the remaining shares held by NSSF to the public through the stock market.