NIC Bank group profits up 11 per cent

NIC Bank Group Limited has reported a Shs 2.9 billion Profit before Tax or 11% increase for the first half ended June 30, 2014 on the back of improved lending to key sectors of the economy in Kenya and the region.

Announcing the results Thursday, the Group Managing Director, Mr. John Gachora, also attributed the improved performance to robust initiatives by the Group to tap into the growing East African Community regional market, as the Group strengthens its diverse business portfolio spanning commercial banking, asset and trade finance, investment banking, corporate financial advisory, stock brokerage and Bancassurance.

“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. While we anticipate the macro-economic fundamentals to remain fairly stable, the security threat remains a real risk to the economy,” said Mr. Gachora.

Total income for the first half was Shs 5.4 billion compared to Shs 5.0 billion in the first half of last year, driven largely by increase in interest income and non – funded income.

Interest income grew by 19% to Shs 6.7 billion, an increase of Shs 1,086 million, attributable to the growth in the loan book by Shs 20.5 billion [or 29%] from Shs 71 billion to Shs 91.5 billion in June 2014. To fund this growth in advances, the deposit base increased to Shs 93.5 billion as at June 2014, reflecting a 17% growth from Shs 80 billion in June 2013.

The Group’s capital base as at June 2014 stood at Shs 19.2 billion, a growth of Shs 2.3 billion over June 2013, with key banking regulatory requirements in excess of the minimum thresholds set by the Central Bank of Kenya.