In September 2019, KCB Bank acquired National Bank of Kenya. Just two years in, the two banks are celebrating a loving and successful “father – son” relationship today being Valentine’s Day.
For National Bank, the day started with a reassuring letter from KCB, in the befitting tone of a father to a son. As the successful son who was nudged to great success by the father, National Bank wrote a touching reply promising to work even harder and make the father even prouder. The exchange was done in a manner to mimic handwritten love letters, adding quite a nostalgic touch from the days when this was the norm.
The acquisition was conducted amid great goodwill from all involved – that is regulators, stakeholders, shareholders and of course both banks. I believe this goodwill played a great role in returning NBK to profitability within just 2 years, since the working environment has been conducive.
National Bank of Kenya was 57 years old when KCB stepped in to be a father figure, aiming for full integration in 24 months. It has come to pass, and the successful acquisition and integration is grounds for great celebration of love this Valentine’s day.
NBK has been largely successful over the years save for financial turbulence here and there, and toxic loans that threatened to bring it to its knees. For the most part, it has been able to conduct its own internal reviews and sort out its problems, but Government bail outs have also come in handy.
Then KCB happened and the National Bank we knew and loved is back on its feet. Just like a father would handhold a son and help them navigate turns and twists in life and work, KCB has steered NBK to a point where it has just posted 1000% growth in net profit in this past year. This kind of fast and massive turnaround is something every father would be proud of, especially since it has come out of National Bank’s strict and diligent adherence to laws and regulations surrounding the finance industry.
KCB has given a solid promise this valentine to help NBK move even further, and things can only get better for the relationship.