NIC Bank half-year profit up 9.8pc to Sh2.24 billion
NIC chief executive John Gachora. PHOTO | FILE
What you need to know:
NIC Bank announced that its half-year net profit stood at Sh2.24 billion, having increased from Sh2.04 billion reported during a similar period last year.
The performance was, however, weighed down by higher total operating expenses, which increased by 33.2 per cent, a jump which management attributed to “investments in talent and new technology.”
The bank said its subsidiaries —NIC Bank Tanzania, NIC Bank Uganda, NIC Capital, NIC Insurance Agents and NIC Securities — all contributed positively to the its financial performance in the review period.
NIC Bank Group has reported a 9.8 per cent jump in net profit for the six months to June driven by interest income on loans.
The lender on Wednesday announced that its half-year net profit stood at Sh2.24 billion, having increased from Sh2.04 billion reported during a similar period last year.
NIC Bank’s performance was lifted by interest income which grew 19.2 per cent to stand at Sh6.41 billion, corresponding with an uptick in net loans and advances to Sh108.3 billion from Sh91.5 billion in 2014.
The performance was, however, weighed down by higher total operating expenses, which increased by 33.2 per cent, a jump which management attributed to “investments in talent and new technology.”
Of this total operating expense of Sh3.3 billion, staff costs comprised Sh1.38 billion, having increased by 20.6 per cent. “Net loans and advances grew by 18.4 per cent over the period under review,” the company said in a statement.
“This was as a result of concerted efforts by the bank to grow its loan book in the retail and corporate segments. The Bank, which has historically focused on corporate banking, is now shifting focus on growing its retail business.”
Branch expansion
NIC’s customer deposits during the period grew by Sh11.7 billion to Sh105.2 billion but the interest paid to customers went down by 3.4 per cent to Sh2.55 billion.
The bank’s total assets increased by 18.2 per cent to Sh153.2 billion while its total liabilities also went up 17 per cent to close the period at Sh129.1 billion.
“Our branch expansion is on track and we plan to roll out an additional four new branches in the second half of this year. We have also recently bulked up our executive team,” said John Gachora, the group’s managing director.
The bank said its subsidiaries —NIC Bank Tanzania, NIC Bank Uganda, NIC Capital, NIC Insurance Agents and NIC Securities — all contributed positively to the its financial performance in the review period.
The board recommended the payment of an interim dividend of 25 cents per share, amounting to a total payout of Sh160 million.
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