NIC Bank Records Flat Growth As Bad Debts Rise

NIC Bank (NSE: NIC) released 1Q16 results, recording a 0.3% decline in profits after tax to KES 990.79Mn from KES 993.85Mn in 1Q15. Earnings per share remained flat at KES 1.55 in 1Q16. Net Interest Income recorded a 34.7% jump to KES 2.96Bn from KES 2.19Bn in 1Q15. Non-funded income rose by 15.3% to KES 1.14Bn mainly attributable to a 10.3% increase in fees and commissions and a 45.9% increase in other operating income. The Group’s assets grew by 11.9% from KES 143.73Bn in 1Q15 to KES 160.90Bn in 1Q16 driven by 1,535% growth in investment securities from KES 255 MN in 1Q15 to KES 4.2 BN in 1Q16.

Loans and advances recorded a 6.1% increase to KES 111.99Bn, while customer deposits shrank by 52.7% to KES 1.06Bn during the period

The local market closed on an austere state as depicted by the market indicators. The NSE 20-share index closed on a downturn plunging by 0.30% to 3977.85 points. The NSE All Share Index went down by 0.06% to close at 145.63 points while the NSE 25 Share Index followed suit, declining by 0.30% to close at 4213.57 points. Market capitalization contracted by 0.06% to KES 2,052.68 billion from KES 2,053.97 billion. Equity turnover similarly declined, plummeting by 18.10% to KES 0.419 billion. Market breadth, an unbiased measure of the market performance, indicated that the market conditions remained unchanged; with the number of stocks that declined, 21, outweighing the number of stocks that advanced, 13.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 47.52% of the total market value traded activity. ARM Cement Ltd (NSE: ARM) also registered high levels of activity, accounting for 19.53% of the total market turnover.

TPS Eastern Africa Ltd (NSE: TPS) capped the gainers list, advancing by 6.98% to close the day at KES 23.00. Sasini Ltd (NSE: SASN) gained 4.82% to close the day as the second best performer at KES 18.50.

WPP ScanGroup Ltd (NSE: SCAN) emerged as the top loser of the day, plunging by 7.77% to close at KES 23.75. Kenya Airways Ltd (NSE: KQ) similarly lost 6.82% to close at KES 4.10.

Article by Genghis Research.