NIC Bank posts 17.56pc increase in net income, subsidiaries drag profit

An NIC Bank branch in Nairobi. NIC Bank has posted a 17.56 per cent increase in net income in the first nine months of this year, though its subsidiaries pulled down its
profits. Photo/FILE  NATION MEDIA GROUP

By David Mugwe

In Summary

• NIC Bank has posted a 17.56 per cent increase in net income to Sh2.81 billion over the period ended September this year from Sh2.39 billion over the period ended September 2012
• Profit after tax for the Kenya operation rose by 21.57 per cent to Sh2.72 billion in the first nine months of this year from Sh2.24 billion in the first nine months of last year
• Its subsidiaries however posted a combined Sh91.85 million profit after tax in the first three quarters of this year, a 40.65 per cent drop from the Sh154.77 million profit after tax posted in the first three quarters of last year

NIC Bank has posted a 17.56 per cent increase in net income in the first nine months of this year, though its subsidiaries dragged its profits.

The bank, which has subsidiaries in Uganda and Tanzania, a stock brokerage and an investment bank on Wednesday said that its group profit after rose to Sh2.81 billion over the period ended September this year from Sh2.39 billion over the period ended September 2012.

Profit after tax for the Kenya operation rose by 21.57 per cent to Sh2.72 billion in the first nine months of this year from Sh2.24 billion in the first nine months of last year.

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Its subsidiaries however posted a combined Sh91.85 million profit after tax in the first three quarters of this year, a 40.65 per cent drop from the Sh154.77 million profit after tax posted in the first three quarters of last year.

Group interest income dropped marginally by 2.22 per cent to Sh8.56 billion in the first nine months of this year compared to Sh8.75 billion in the first nine months of last year while interest expenses dropped 34.34 per cent to Sh3.13 billion from Sh4.76 billion respectively.

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NIC Bank’s loan book grew by 16.05 per cent to Sh76.67 billion in the first nine months of this year from Sh66.07 billion in the first nine months of last year while deposits dropped marginally by 2.52 per cent to Sh80.87 billion from Sh82.96 billion over the same time period.

NIC Bank’s shares at the Nairobi Securities Exchange on Tuesday closed at an average price of Sh60, a 56.86 per cent gain from the opening price of Sh38.25 this year