An NIC Bank branch in Nairobi. The bank has posted an increased net profit of Sh2.04 billion for the six months to June.
What you need to know:
The Tanzanian and Uganda subsidiaries, NIC Capital (investment banking), NIC Insurance Agents and NIC Securities (Brokerage) contributed just 3 per cent to the Group’s half year performance.
NIC Bank Group’s net profit for the six months to June has increased 9.1 per cent to Sh2.04 billion compared to Sh1.87 billion posted during a similar period last year.
This jump in earnings was mainly due to an improved interest income which in the first half of the year grew 19.7 per cent to Sh6.67 billion compared to last year’s sh5.57 billion. The mid-sized lender, which also has presence in Kenya, Uganda and Tanzania, saw its loan book grow Sh71 billion to Sh91.5 billion in June 2014, a 29 per cent jump.
John Gachora, the group’s managing director, attributed the growth in profitability to “improved lending to key sectors of the economy” in the region but remained cautious about the security risk.
“We are optimistic that we will sustain the growth trajectory into the second half of the year with more focus on deal making opportunities in Kenya and the region,” said Mr Gachora. “While we anticipate the macro-economic fundamentals to remain fairly stable, the security threat remains a real risk to the economy.”
The Tanzanian and Uganda subsidiaries, NIC Capital (investment banking), NIC Insurance Agents and NIC Securities (Brokerage) contributed just 3 per cent to the Group’s half year performance.
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Note: The results are not exact but very close to the actual.
