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NIC Bank Q1 2011 Profit After Tax rises by 54%
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mwanahisa
#1 Posted : Thursday, May 12, 2011 10:39:07 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
NIC has released a steady set of results for the 1st Qtr 2011, driven primarily by an increase in Net Interest Income.

PBT up 52% to Kshs 803,338,000

PAT up 54% to Kshs 550,114,000

Operating Income up 28% to Kshs 1,430,642

Net Interest Income up 45% to Kshs 953,906,000

All in all, a commendable and sustainable set of results.
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mkonomtupu
#2 Posted : Thursday, May 12, 2011 10:45:09 AM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
@mwanahisa thanks I have been waiting for this. it occupies a large chunk in my portfolio. Good results they are doing so well in asset finance
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PONDI
#3 Posted : Thursday, May 12, 2011 10:53:53 AM
Rank: Veteran

Joined: 5/8/2007
Posts: 885
.. offcourse they doing super fine. they still levy 'account maintenance fees' of 350 kshs. thats 4200 annually. surely aint that my entire annual water bill? or council rates? or that policy? .. cant airtel just...
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mwanahisa
#4 Posted : Thursday, May 12, 2011 10:55:41 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
Dont mention it, Comrade mkonomtupu.

Interestingly, if we project a similar performance for the remaining 3 quarters of the year, NIC is trading at a forward PE of ONLY 8.26 even after adjusting the number of the shares for the yet uncredited bonus issue. This is actually a steal.

I expect that the bank can sustain this performance considering that most of its income is from interest income this time around.

DISCLAIMER: I have a nominal number of shares in this counter, as I have always seen it as too slow to appreciate.
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The Merchant
#5 Posted : Thursday, May 12, 2011 11:08:09 AM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
mwanahisa wrote:
Dont mention it, Comrade mkonomtupu.

Interestingly, if we project a similar performance for the remaining 3 quarters of the year, NIC is trading at a forward PE of ONLY 8.26 even after adjusting the number of the shares of the yet uncredited bonus issue. This is actually a steal.

I expect that the bank can sustain this performance considering that most of its income is from interest income this time around.

Can Q2 interest income beat Q1 interest income considering the higher interest rates? What makes you conclude that these results are sustainable?d'oh!
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mwanahisa
#6 Posted : Thursday, May 12, 2011 11:16:24 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
The Merchant wrote:

Can Q2 interest income beat Q1 interest income considering the higher interest rates? What makes you conclude that these results are sustainable?d'oh!


Primarily because interest income is recurrent. The loan book will be bigger than it was throughout 2010. This translates to higher income as long as the interest margin is maintained and NPLs do not spike.

History suggests that banks are able to maintain their net interest margins even when interest rates rise. NIC also has a good history regarding NPLs. Net Profits have been growing uninterrupted for quite a while now.
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Magnetic Touch
#7 Posted : Thursday, May 12, 2011 11:29:02 AM
Rank: Member

Joined: 12/31/2008
Posts: 90
Clearly, NIC does not have the x-factor.
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Iborian
#8 Posted : Thursday, May 12, 2011 12:38:51 PM
Rank: Member

Joined: 4/17/2009
Posts: 194
ZZZZZZZZZZZZ
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muganda
#9 Posted : Thursday, May 12, 2011 12:49:42 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Magnetic Touch wrote:
Clearly, NIC does not have the x-factor.


Well put... what constitutes the X-factor? And the shares that have it just seem to float like helium-filled baloons?

I bought NIC aeons ago at 60/= when I was a young impetuous trader; before I knew some baloons (like those during promulgation) actually sink.
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Magnetic Touch
#10 Posted : Thursday, May 12, 2011 2:06:07 PM
Rank: Member

Joined: 12/31/2008
Posts: 90
muganda wrote:
[quote=Magnetic Touch]Well put... what constitutes the X-factor? And the shares that have it just seem to float like helium-filled baloons?

I bought NIC aeons ago at 60/= when I was a young impetuous trader; before I knew some baloons (like those during promulgation) actually sink.



Excitement, machismo, a certain Magnetic Touch. NIC does not have all these - just look at the number of contributions or views. If it were Equity, you would see.
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