NIC Group’s pre-tax profit dips by 9.2pc

March 22, 2018
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During the period under review, the loan to deposit ratio reduced to 91 per cent down from 107 percent a year earlier, while liquidity levels as at the end of December 2017 stood at 48.2 per cent/FILE

, NAIROBI, Kenya, Mar 22 – NIC Group has reported a 9.2 per cent decline in its pre-tax profit to Sh5.6 billion for the year ended 2017, compared to Sh6.2 billion the previous year.

The company attributed the decline of its profit to the reduction in interest income on loans and advances.

During the period under review, the loan to deposit ratio reduced to 91 per cent down from 107 percent a year earlier, while liquidity levels as at the end of December 2017 stood at 48.2 per cent.

NIC Group Managing Director John Gachora said the introduction of the rate cap in 2016 has seen a reduction in lending to businesses leading to a sharp decline in credit growth in the private sector.

“We have however continued to see a growth in lending. The Bank’s balance sheet primarily led by lending to SME’s and Asset Finance customers saw an increase in net loans and advances by 5 percent year on year to Sh112.3 billion,” he said.

Total assets grew by 22 per cent year-on-year from Sh169.5 billion in 2016, to Sh206.2 billion as at end of 2017.

The bank’s board has recommended the payment of a first and final dividend of Sh1 per share for the year.

“Our customer account numbers have increased by 67 percent in the past three years and 11 per cent during the year under review. In line with its digitization agenda, the Bank now processes more than 58 per cent of all transactions though its digital channels up 16 per cent year on year,” Gachora, said.

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