Chase Bank Chairman, Group MD resign after restating financials

Chase Bank

Chase bank Chairman Zafrullah Khan and Group Managing director Duncan Kabui have resigned with immediate effect in unclear circumstances.

Their resignation however comes on the day the bank restated its financial results, posting a Sh686. million loss. The bank’s financial performance has raised concern having reported a Sh2.3 billion profit in 2014.

Of particular concern is the banks non performing loan portfolio that grew from Sh3 billion in 2014 to Sh11 billion in 2015.

Mr Khan has been replaced bas chairman by Muthoni Kuria while Chase bank Chief Executive Paul Njaga stays on in his position.

“The board would like to reassure all its customers, partners and the general public that Chase Bank is a strong, sound and transparent institution that has operated in Kenya for the last 20 years,” Mrs Muthoni said in a statement.

The resignation of the two comes barely a week after National Bank sent six senior managers on compulsory leave pending an investigation into the bank’s financial performance. In its case, the bank reversed a Sh3.2 billion third quarter profit to post a Sh1.2 billion loss after several audits poked holes into its performance.

On Wednesday Central Bank of Kenya Governor Dr Patrick Njoroge said the regulator would conduct random IT audits in an effort of keeping players in the sector on their toes. The regulator has raised concern over lending policies held by banks given the rising cases of nonperforming loans.

For Citizen TV updates
Join @citizentvke Telegram channel

Video Of The Day: Former sports CS Hassan Wario convicted over Rio games scam

Story By Michael Karanja
More by this author

Leave a Reply

Your email address will not be published. Required fields are marked *