NAIROBI, March 11 (Reuters) - National Bank of Kenya (NBK.NR: Quote, Profile, Research) said on Thursday its pretax profit in 2009 rose to 2.16 billion shillings ($28.1 million) and that it would issue bonus shares rather than resuming dividend payments.
National Bank has attracted attention lately because the government is selling its shares in the 10th largest bank by assets in east Africa's biggest economy.
"Total assets have gone up from 42.69 billion shillings to 51.04 billion shillings," Managing Director Reuben Marambii said, referring to the year under review.
The bank suffered huge losses in the first half of the last decade, largely due to bad debts taken by politicians and their associates. It has not paid a dividend in recent years, despite consistent profit growth, as it covered the losses.
"We have not been expanding these last few years. We were simply consolidating ... we have been left behind by quite a few banks. Now we want to catch up," he said.
"We are not going to pay a dividend ... The directors are pleased to recommend, subject to approval, a bonus issue in the proportion of 2 new ordinary shares for every 5 ordinary shares held," he told an investor briefing. (Reporting by Richard Lough; Editing by Duncan Miriri)
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