NIC Bank reports increase in profits
from ANTONY LANGAT in Nairobi, Kenya
NAIROBI – THE NIC Bank Group Limited has reported a Sh 2,9 billion profit before tax for the first half of the year ended June 30 2014 on the back of improved lending to key sectors of the economy in Kenya and the region.
This represents an 11 percent increase from the corresponding period last year.
Announcing the results on Wednesday, the Group Managing Director, John Gachora, also attributed the improved performance to robust initiatives by
the Group to tap into the growing East African Community regional market.
The Group is strengthening its diverse business portfolio spanning commercial banking, asset and trade finance, investment banking, corporate financial advisory, stock brokerage and Bancassurance.
“We are optimistic that we will sustain the growth trajectory into the second half of the year with more focus on deal making opportunities in Kenya and the region. While we anticipate the macro-economic fundamentals to remain fairly stable, the security threat remains a real risk to the economy,” said Mr. Gachora.
Total income for the first half was Sh 5.4 billion compared to Sh 5 billion in the first half of last year, driven largely by increase in interest income and non – funded income.
Interest income grew by 19 percent to Sh 6,7 billion, an increase of Sh 1,086 million, attributable to the growth in the loan book by Sh 20,5 billion from Sh 71 billion to Sh 91,5 billion in June 2014.
To fund this growth in advances, the deposit base increased to Sh 93, 5 billion as at June2014, reflecting a 17 percent growth from Sh 80 billion in June 2013.
The Group’s capital base as at June 2014 stood at Sh 19,2 billion, a growth of Sh 2,3 billion over June 2013, with key banking regulatory requirements in excess of the minimum thresholds set by the Central Bank of Kenya.
– CAJ News
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