M Oriental Bank has scheduled an Extraordinary General Meeting (EGM) for 3rd October 2025 to seek shareholder approval for a proposed capital increase. The bank plans to issue up to 50 million new ordinary shares of par value KSh 20 each over five years.
The proposed allotment aims to strengthen the bank’s capital base and ensure compliance with the Central Bank of Kenya’s phased minimum core capital requirement of KSh 3 billion, which takes effect at the end of 2025. As of June 2025, M Oriental’s core capital stood at KSh 2.51 billion, leaving a shortfall of KSh 490 million.
“This move provides the flexibility needed to raise capital in line with CBK’s evolving regulatory framework,” the bank stated in its official notice dated 12 September 2025.
The EGM agenda includes confirming quorum, tabling apologies, and approving the issuance of shares to support future fundraising efforts.
Capital Pressure Despite Profit Growth
M Oriental Bank reported a 19.2% increase in profit after tax to KSh 93.1 million for the half-year ended 30 June 2025. Profit before tax rose 12.3% to KSh 122.8 million, supported by a 57.1% drop in loan loss provisions. However, asset quality and capital ratios showed signs of strain.
Gross non-performing loans rose 22.8% to KSh 2.05 billion, while the core capital to risk-weighted assets ratio declined to 19.37%, down from 28.48% a year earlier.
The bank’s total assets expanded 9.9% to KSh 14.33 billion, driven by an 11% increase in customer deposits. Net loans advanced 20.2% to KSh 7.15 billion, and total equity grew 5.6% to KSh 3.60 billion.
