, NAIROBI, Kenya, May 2 – The NIC Bank Group has reported a 20 percent increase in net profit in the first quarter ended March 31, 2013 to Sh867 million compared to Sh723 million in the same period in 2012.
Net interest income grew by 43 percent to Sh1.7 billion, an increase of Sh504 million, attributable to the growth in the loan book by Sh14 billion from Sh56.6 billion to Sh70.6 billion by March 2013.
To fund this growth in advances, the deposit base increased to Sh78.4 billion as at March 2013, reflecting a 13percent growth from Sh69.3billion reported in March 2012.
Total operating income grew by 29 percent to Sh2.4 billion, an increase of Sh551 million, underpinned by the expansion of the balance sheet by Sh18.4 billion and the growth in non-funded income.
“Although the results achieved are good, they have been adversely affected by a slowdown in business activity associated with the recently concluded General Election. Other factors that affected the results of the Group are the volatility in money markets, and exchange rate movements associated with the Elections,” Group Managing Director, James Macharia noted.
However total operating expenses increased by 41 percent to Sh1.2 billion mainly due to additional headcount in line with balance sheet growth and an increase in the scale of operations.
The banks’ subsidiaries including NIC Tanzania, NIC Capital, NIC Securities and NIC Insurance Agents, have all contributed positively to the Group profits.
Plans are underway to open more branches in Nairobi and Tanzania in the course of the year.
As a start, ABC Branch in Westlands was opened in the first quarter of 2013 in addition to the opening of a larger branch at Prestige Plaza.
The Group also plans to establish additional branches along Kenyatta Avenue and Thika Road in Nairobi, Changamwe in Mombasa and two additional branches in Tanzania.
This will increase the total network to 31 branches.