NIC Group Posts 6.17 Billion Shillings Pre-tax Profits

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NIC Group has posted a net pre-tax profit of 6.17 billion shillings and a net profit of 4.3 billion shillings for the year ending 31st of December 2016.  In the financial results released on Wednesday, the lender, while referring on a net profit basis, the profits witnessed during the year under review represents a 3 percent drop year on year.

Operating profit during the period rose by 23.2 percent to 9.9 billion shillings, representing strong growth in the Bank’s core business and a demonstration that execution against its three-year strategy remained on track.

Total operating income for the year grew by 17.4 percent to 16.1 billion shillings compared to 13.7 billion shillings at the same period the previous year. The growth was largely attributed to a number of initiatives the Bank undertook during the year to bolster funded and non-funded income lines.

In the period under review, the Group’s net profit was weighed down by significant additional provisions taken to support the non-performing facilities of a few large corporate customers that were impaired in 2015.  The overall NPL ratio however declined year on year from 11.2 percent to 10.8 percent.

“2016 was a challenging year with various factors impacting our operating environment but our strategic shift to reach more retail and SME businesses, as well as branch expansion, continued to drive our performance. NIC Bank continued to roll out strategic partnerships over the course of the year to drive business growth especially around Asset Finance where we continue to be the clear leaders,” said NIC Bank’s Group Managing Director, John Gachora.

The Group reported an increase in total assets of 3.7 billion shillings, while customer deposits remained flat. The capital base on the other hand for the period closed at 30.3 billion shillings, a growth of 4.0 billion shillings over 2015, with key banking regulatory ratios in excess of the minimum thresholds set by the Central Bank of Kenya.

Total Operating expenses, excluding loan loss provision, grew 9.3 percent to 6.2 billion shillings reflecting the Bank’s continued investment in technology and new branches.

 

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Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.You can reach him on: (020) 528 0222 or Email: [email protected]