NIC Bank profit rises to Sh3.6bn

By: BRIAN NGUGI

NIC Bank on Wednesday announced a 9.1 per cent increase in profit after tax to Sh3.6 billion for the nine months ended September 30, 2015 compared to Sh3.3 billion posted during the same period last year.

The mid-tier lender attributed its growth to an expanding loan book, which saw its interest income from loans and advances shoot up to Sh9.9 billion for the period compared to Sh8.2 billion during a similar time last year.

EXPANDED REACH

The lender has in the recent past expanded its reach, establishing subsidiaries in Tanzania and Uganda in addition to its local non-banking subsidiaries bancassurance, brokerage, leasing and investment banking in Kenya.

The lender’s capital position was strengthened last year following a Sh2.1 billion rights issue, a Sh2 billion in subordinated debt secured from the International Finance Corporation, and a Sh5.7 billion from the first tranche of a Sh8 billion medium-term note programme.

NIC Group Managing Director John Gachora said the lender would seek to deepen its reach in the retail and SME segments, as well as increase its footprint with new branches across the region.

SOURCE: DAILY NATION