NIC Bank has come out of the red and posted a net profit of 1.75bn/- for 2015. The bank made a net loss of 281m/- in 2014 which affected basic earnings per share that registered a negative increase of 13m/- in the same year.
The bank, according to financial
statement, attributed the profitability mainly to interest income that
generated 10.33bn/- last year compared to 8.5bn/- of previous year.
The income, however, was eaten by bad
debts written off of 195m/-, which was slightly high compared to 151m/-
in 2014, also impairment losses on loans and advances of consume 1.6bn/-
against 994m/-.
The bank, with five branches and 108
employees, increased the impairment losses as its non-performing loans
to total gross loans remained at 16 per cent. The 16 per cent of NPLs
was representing 16.16bn/- in probable bad loans and advances at the end
of last year compared to 15.55bn/- of 2014.
NIC assets grew by 8.0 per cent to
190.05bn/- at the end of 2015 from 176.39bn/- of 2014, thanks to
investment in government papers and loan portfolio. The bank customer
deposits registered a decrease of 8.0 per cent to slow down to
112.14bn/-in 2015 from 121.46bn/- of 2014.
The bank entered the Tanzania market in
2009 after acquiring a stake in Savings and Finance (S&F) Commercial
Bank and re-branding it to NIC Bank Tanzania in 2010.
NIC Bank Tanzania currently has branches
in Arusha, Mwanza, Kahama and Dar es Salaam. NIC also operates in
Uganda, through its wholly owned subsidiary NC Bank. NIC Bank was
founded in 1959 as National Industrial Credit Bank in Kenya
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