NIC Bank profit up 19 percent

Kenya; NIC Bank Group Ltd has reported a Sh4.7 billion profit before tax - a 19 per cent year-over-year increase, for the third quarter ending September 30, 2014, on the back of improved lending to key sectors of the economy.

Group Managing Director John Gachora, attributed the improved performance to robust initiatives by the Group to tap into the growing East African Community regional market. This is as it strengthens its diverse business portfolio spanning corporate banking, asset and trade finance, investment banking, financial advisory, stock brokerage and Bancassurance.

"We are happy with our results so far and remain optimistic we will continue on this growth trajectory into next year. Our focus will be to penetrate the retail and SME markets as well as increase our footprint in the region," said Gachora. "While we anticipate the macro-economic fundamentals to remain fairly stable, the security threats remain a real risk to the economy and our growth, we are forever optimistic that Government efforts will bear fruit," said  Gachora.

Total operating income grew to Sh8.5 billion compared to Sh7.8 billion the same period last year, largely driven by increase in interest income and non-funded income. Growth in our loan book saw interest income grow by 18 per cent to Sh10.1 billion, compared to Sh8.6 billion the previous year. The loan book grew by 26 per cent from Sh76.7 billion in September last year to Sh96.8 billion in September this year.

The group's cost to income ratio remained at the same level as the prior year at 42 per cent while total operating expenses reduced by three per cent to Sh3.7 billion.