NIC Bank

NIC Bank 9 Months Pretax Profit Up 12%

NIC Bank recorded a 12% growth in pre-tax profits for the third quarter of the year 2009 to stand at ksh.1.19 billion. The bank reported a Ksh.819 million in after-tax profits compared to Ksh.741 million recorded by end of September 2008. Net Interest income went up 25.6% to Ksh.1.8 billion compared to Sh1.4 billion last year.

Customer deposits in the quarter grew by 19 per cent from Sh1.1 billion in 2008 to Sh1.4 billion. Its Earnings per share rose to Ksh.2.51 from Ksh.2.27 at the end of September last year.

NIC Bank’s provisioning for bad loans was up 83% from Ksh.139 million in the third quarter the previous year to Ksh.255 million during the same period this year. This huge increase in the bank’s loan loss provision shows anticipation of higher delinquencies and a strain in the bank’s quality of loan book. Loans and advances also went up 21% to Ksh.2.96 billion

The bank’s total assets stood at ksh.47.5 billion, from Ksh.39.82 billion last year. NIC is ranked 11th in the country by assets. The bank also has it operations in Tanzania, where it bought a 51% stake at Savings and Finance Commercial Bank (S&F) Ltd last year. This aggressive branch (now standing at 14 outlets) and regional expansion by the bank resulted in a 24.2% increase in operating expenses.

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