, NAIROBI, Kenya, Nov 22 – NIC Bank has reported a Sh2.4 billion net profit for the nine months ending September 30, 2012 representing an increase of 36 percent from Sh1.7 billion registered during the same period last year.
Net Interest Income grew by 34 percent to Sh4 billion, attributed to the growth in the loan book by 22 percent from Sh54.3 billion to Sh66.1 billion by September 2012.
The deposit base increased to Sh83 billion as at September 2012, reflecting a 35 percent growth from Sh61.3 billion reported in September 2011. Total non-funded income grew by 30 percent to Sh2.2 billion up from Sh1.7 billion reported for the similar period in the previous year.
Managing Director James Macharia noted that the growth in non funded income was in line with the company’s long term strategy to diversify its revenue streams.
Total operating income grew by 32 percent to Sh6.2 billion, an increase of Sh1.5 billion, underpinned by the expansion of the balance sheet to Sh101 billion, an increase of 35 percent and the growth in non-funded income.
However total operating expenses excluding provisions for loan losses increased by 29 percent to Sh2.6 billion driven by a planned branch expansion program and increased staff complements. The expenses went up due to high inflation which increased the cost of doing business especially in the early part of 2012.
On the just concluded Rights Issue for its future growth, the bank received an overall subscription of Sh7 billion compared to the target of Sh2 billion, which translates to a 338 percent subscription rate.
NIC Bank group’s subsidiaries include NIC Tanzania, NIC Uganda, NIC Capital (Investment Banking), NIC Insurance Agents (Bancassurance) and NIC Securities (Brokerage).