National Bank of Kenya today issued profit warning, the bank said its 2015 earnings will fall by at least 25 percent hurt by bad loans.
The National bank placed its chief executive officer and five top managers on leave on Tuesday pending an internal audit process and appointed Wilfred Musau to take over daily operations.
In a statement issued by the bank, it said “NBK’s non-performing loans portfolio increased towards the end of 2015 which led to a sharp increase in the level of impairment charges,”
“The bank has identified the NPLs and has taken a series of steps to manage recovery of the said positions,” it said.
The bank last year reported pretax profit of 1.3 billion Kenyan shillings, down 28 percent hurt by costs stemming from lay-offs.