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NIC Bank

NIC Bank: 9-month after tax profits up 45%

NIC Bank Limited recorded net income of KES513 million for the nine months ended 30 September 2007, an increase of KE159 million, or 45 per cent, from KES354 million for the nine months ended 30 September 2006. Total non interest income for the nine-month period ended 30 September 2007 was KES547 million compared to KES374 million for the same period in 2006, an increase of 46 per cent. The increase net income was primarily attributed to a substantial increase in non-interest income.

NIC Bank Limited recorded net income of KES513 million for the nine months ended 30 September 2007, an increase of KE159 million, or 45 per cent, from KES354 million for the nine months ended 30 September 2006. Total non interest income for the nine-month period ended 30 September 2007 was KES547 million compared to KES374 million for the same period in 2006, an increase of 46 per cent. The increase net income was primarily attributed to a substantial increase in non-interest income.

Year over Year 9-Month Analysis – 2006 vs. 2007

  • Net income was KES513 million for the nine months ended 30 September 2007, an increase of 45 per cent from KES353 million in the same period of 2006.
  • Interest income was KES2.019 billion for the nine months ended 30 September 2007, an increase of 16 per cent from KES1.743 billion in the same period of 2006.
  • Total Interest Expenses were KES838 million for the nine months ended 30 September 2007, an increase of 27 per cent from KES662 million in the same period of 2006.
  • Staff costs were KES376 million for the nine months ended 30 September 2007, an increase of 1.4 per cent from KES371 million in the same period of 2006.
  • Total Non-interest income was KES547 million for the nine months ended 30 September 2007, an increase of 46 per cent from KES374 million in the same period of 2006.
  • Total assets were KES31 billion at 30 September 2007 compared to KES24 billion at 30 September 2006.
  • Total interest bearing assets were KES25 million at 30 September 2007 compared to KES20 million at 30 September 2007.
NIC BANK OF KENYA  LTD   Bank Income statement
FOR THE PERIOD ENDED 30-Sep-07 30-Sep-06 06 vs. 07
KES.’000 KES.’000 % Change
Interest income
Loans and advances 1,826,259 1,541,746 18.45%
Government securities 115,889 173,404 -33.17%
Deposits and placements with banking Inst. 76,033 24,324 212.58%
Other Interest Income 1,539 4,118 -62.63%
Total interest income 2,019,720 1,743,592 15.84%
Interest Expense
Customer deposits 792,624 634,435 24.93%
Deposits and placements from the banking Insti. 13,320 12,181 9.35%
Other Interest expense 32,201 15,748 104.48%
Total Interest Expenses 838,145 662,364 26.54%
Net interest Income/(Loss) 1,181,575 1,081,228 9.28%
Other operating Income
Fees and commissions on loans and advances 101,630 72,208 40.75%
Other fees and commissions 205,570 128,952 59.42%
Foreign exchange trading income/(loss) 160,844 101,729 58.11%
Dividend income - -
Other income 79,769 71,384 11.75%
Total Non-Interest Income 547,813 374,273 46.37%
Total Operating income 1,729,388 1,455,501 18.82%
Other Operating Expenses
Loan loss provision 85,638 91,223 -6.12%
Staff costs 376,304 371,072 1.41%
Directors’ emoluments 33,359 31,807 4.88%
Rental charges 29,482 22,334 32.01%
Depreciation charge on property and equipment 74,540 72,181 3.27%
Amortization charges 20,783 21,027 -1.16%
Other operating expenses 375,921 332,993 12.89%
Total operating Expenses 996,027 942,637 5.66%
Profit /( loss) before tax and exceptional items 733,361 512,864 42.99%
Exceptional Items - - -
Profit/(loss) after exceptional items 733,361 512,864 42.99%
Current tax (220,121) (158,865) 38.56%
Deferred tax - -
Profit/(loss) after tax  and exceptional items 513,240 353,999 44.98%
Earnings per share-Basic and Diluted 6.23 4.30 44.88%
Dividends per share -Declared - 0.80
NIC BANK   LTD  Bank Balance sheet
AS AT 30-Sep-07 30-Sep-06 06 vs 07
KES.’000 KES.’000 % Change
ASSETS
Cash (Both local and foreign) 325,912 278,897 16.86%
Balances due from Central bank of Kenya 3,393,074 2,626,800 29.17%
Kenya Government Securities 988,225 2,646,892 -62.66%
Foreign Currency, Treasury bills and bonds - -
Deposits and balances due from local banking institutions 565,263 883,296 -36.01%
Deposits and balances due from banking Insti. abroad 3,376,189 862,219 291.57%
Government and other securities held for dealing purposes - -
Tax recoverable - -
Loan and advances to customers (net) 20,319,162 15,592,263 30.32%
Investment securities - -
Balances due from group companies 3,815 -
Investment in associates - -
Investment in subsidiary companies 90,501 80,501 12.42%
Investment in joint ventures - -
Investment in properties - -
Property and equipment 458,608 473,219 -3.09%
Prepaid lease rentals 8,031 8,156 -1.53%
Intangible assets 43,046 64,658 -33.43%
Deferred tax asset - 17,412
Retirement benefit asset - -
Other assets 1,046,104 151,199 591.87%
TOTAL ASSETS 30,617,930 23,685,512 29.27%
LIABILITIES
Balance due to Central bank of Kenya - - -
Customer deposits 25,778,320 19,174,956 34.44%
Deposits and balances due to local banking insti. - - -
Deposits and balances due to foreign banking Institutions - 398,283
Other money market deposits - -
Borrowed funds 518,532 322,699 60.69%
Balances die to group companies 46,865 46,565 0.64%
Tax payables 42,073 42,454
Dividends payable - 65,932
Deferred tax liability 32,958 -
Retirement benefit liability - -
Other liabilities 807,576 638,907 26.40%
Total  liabilities 27,226,324 20,689,796 31.59%
SHAREHOLDERS’ FUND
Paid Up/Assigned  capital 412,073 412,073 0.00%
Share premium 299,944 299,943 0.00%
Revaluation reserve 104,768 107,761 -2.78%
Retained Earnings/(Accumulated losses) 2,424,671 2,041,891 18.75%
Statutory Loan Los Reserve 150,150 134,048
Propose dividends - -
Capital grants - -
Total shareholders’ Funds 3,391,606 2,995,716 13.22%
Total Liabilities & Shareholders’ Fund 30,617,930 23,685,512 29.27%

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