What will KCB do with all the bad debts NBK has? I remember years ago (early 2000s?) kulikuwa na ministers and senior civil servants, politicians and judges who took millions of shillings of loans from NBK without collateral of any sort. Did they ever repay?
I own a handful of shares of NBK. They are the only shares I have ever bought and regretted immediately after buying but decided to let them lay idle.
NBK was the bank of choice for Moi to give loans to politicians. He used to use it to bring politicians over to his side and keep them in line. If they start getting out of line, Moi would instruct the bank to recall the loan. This was Vintage Moi
Those ones were written off kitambooo, when Kibaki took over NBK was restructured so they basically did away with the loans they couldnt collect, GOK injected cash to stabilise it.
Their loan Provisions are currently at 13B against a loan book of 47B according to P&L for 2018. This means their NPL is very high meaning a big chunk of these loans will be written off to bring the books to “accebtable standards”. Kuna watu wana bahati watatoroka na millions ya hii bank, eventhough wanajulikana they are not broke. Thats how shitty this NBK is.
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Hii kitu has been a cash cow for staff and government officials, once saw a business plan drawn up by a Cash Officer’s son for a Personal Unsecured loan ya kitu 200K, going through it you could tell it would end up in the bad debts section.
On the plus side, It was a great bank for depositors, you know it isn’t going down ever ata wakule mpaka core capital, plus they were very generous with loans na pia recovery wasnt aggressive kama ile ya Mwangi and co.
Your loan being classified as non-performing doesn’t mean you escape your obligations. Records still exist. The bad debts might be sold to a collection agency that might slap more punitive interest rates. Usishangae siku moja ka-kampuni fulani kaki-sue estate ya Biwott for billions over the unsecured shs148 million loan he took when he was a powerful cabinet minister. Courts will most likely side with the debt collector, after which auctioneers will swoop in without mercy. Estate mzima ina-collapse juu ya ujeuri.
Im looking at the provisions set aside. Though its an IFRS requirement nowadays, those numbers are huge. Its an indication of debts going bad. Compare these percentages na other tier 1 banks uone the sharp contrast. In short, wenye wako na hizi madeni are giving NBK the middle finger and telling them hakuna kitu mnaeza nifanyia.
Kitu inaeka hii bank afloat ni NSSF na deposits za DOD. Ingekuwa ni customer deposits hii bank ingekuwa ilianguka kitambo saaaana, with such a balance sheet
Kcb watanunua na 5 Bob a share ,so tulia my fren
Niliacha ikiwa 35/ 40 4 years ago.
Well, if you are owing a shares of NBK I only hope that it is not some significant amount of funds. I dont by any chance think that NBK is a good investment. KCB will first fire all managers who are solely to blame for NBKs condition