Thursday, March 31, 2016

NIC Bank posts 1.8bn/- profit

DAILY NEWS Reporter
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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