The Board of Directors at the National Bank of Kuwait – Egypt (NBK) has agreed to increase its issued and paid-up capital from EGP 1.5bn to EGP 5bn.
In a statement to the Egyptian Exchange (EGX) on Wednesday, the bank said that the EGP 3.5bn increase will be distributed over 350 million shares. It will come with a nominal value of EGP 10/share giving 2.3 free share per share.
NBK also said that it will increase its authorised capital from EGP 2.5bn to EGP 10bn, to accommodate the future increase in its issued and paid-up capital. This will follow on from the approval of the Central Bank of Egypt (CBE).
The new banking law obliges banks operating in the local market to increase their capital to EGP 5bn, and foreign bank branches to $150m.
The NBK’s Board of Directors has also decided to amend Articles 4, 6, and 7 of its Articles of Association for presentation to the bank’s extraordinary general assembly, which will also be subject to CBE approval.
This comes in addition to the disclosure report form presenting the amendment in accordance with Article 48 of the rules stating the process of the procedures for increasing the bank’s capital.
The bank has authorised its Managing Director to make the amendments required by the EGX and the competent administrative authorities.
This comes at a time when the bank’s results revealed that its net profit fell to EGP 1.443bn by the end of December 2020, compared to EGP 2.168bn at the end of December 2019. Its total profits before taxes recorded EGP 2.075bn in December 2020, compared to EGP 2.849bn in the same month of the previous year.
This comes after the decline in loan and similar revenues by about EGP 5.760bn by the end of 2020, compared to EGP 7.770bn by the end of 2019. The bank’s net income from the return also decreased by EGP 2.637bn compared to EGP 3.090bn.
The results of the bank’s business also revealed that the portfolio of loans and facilities increased to EGP 34.566bn by the end of December 2020, compared to EGP 31.550bn at the end of December 2019. Meanwhile, customer deposits decreased by EGP 49.715bn compared to EGP 51.572bn.
The total equity of the bank amounted to more than EGP 1bn, to record EGP 9.063bn by the end of 2020, compared to EGP 8.010bn by the end of 2019. At the same time, the total assets of the bank were EGP 62.193bn compared to EGP 64.324bn in the same comparison period.