(Last Updated On: May 9, 2015)
NIC Bank recorded a 2% rise in profit growth. What has been putting the bank down is a very big rise in bad debts.
Net profit stood at Ksh993.8 million. Provision for bad debts increased by 3 times from Ksh118.9 million to Ksh421.1 million. Gross non performing loans increased by Ksh3 billion. This caused a 43.2% rise in increase in operating expenses to stand at Ksh1.7 billion.
Loan book grew by 23.5% to ksh105.5 billion. Total interest income increased by 17.9% to Ksh3.7 billion. Interest expenses went up by just 7.8% to Ksh1.5 billion. Customer deposits increased by just 4% to stand at Ksh96.1 billion. Non interest income rose by 16.5% to Ksh986.5 million.
NIC bank wants to concentrate more on retail and SME. They will increase their number of branches to get a bigger footprint.