NIC Bank Group has reported a pre-tax profit of KES 2.92 billion, for the first half of 2017, compared to Ksh 3.22 billion the prior year.
This marked a 9.3 percent year on year decline, driven by a reduction in lending margins as a result of the Banking Amendment (2016) Act.
Total operating income declined by 10 percent year on year to KES 7.4 billion from KES 8.2 billion while total operating expenses (excluding loan loss provisions) increased year on year in line with the Bank’s strategic move to invest in technology and support branch expansion.
Non-performing loans remained relatively stable growing from KES 13.8 billion as at December 2016 to KES 14.3 billion as at June 2017, reflecting the challenging operating environment.
Total assets increased to KES 189.5 billion, a 12.1 percent year on year increase from KES 169.1 billion the previous year.
The Bank’s total liabilities closed at KES 156.9 billion driven by a strong growth in customer deposits.
Customer deposits increased by 18.9 percent during the period while customer account numbers increase by 11 percent. The Bank attributes this growth to its continued investments in new branches and superior customer service.”
The increase in customer deposits saw the Bank’s loan to deposit ratio reduce to 88 percent, down from 100 percent a year earlier.
The Bank’s cost to income ratio increased to 41 percent from 35 percent reported a year ago.
The Bank’s liquidity levels as at the end of June 2017 stood at 45.6 percent.
--As part of its strategy to service its growing customer base, the Bank intends to open 8 new branches in key centres along the Coast, Nairobi, Nanyuki, Narok and Kitale,
In February, the Bank opened its 34th branch in Rosslyn Riviera Mall, Limuru Road.
At the end of July 2017, the Bank opened its 35th branch in Kiambu, at Ciata City Mall.
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