NIC Group has posted a profit after tax of Sh4.5 billion, for the year ending December 31, compared to Sh4.1 billion in 2014, representing a year on year growth of 9 percent. The Bank’s operating profit was up by 23 percent, representing strong growth in the bank’s core business.
Net Profit however was weighed down by a significant increase in loan loss provisions which the Bank attributed to a few large names.
NIC Bank’s Group Managing Director, John Gachora attributed the growth in profit to concerted efforts by the management to focus on growing the retail segments, channels and transactional products offering in line with the Bank’s long term strategy.
Total operating income for the year grew by 19 percent to Sh13.8 billion compared to Sh11.6 billion the same period the previous year. The growth was largely attributed to a number of initiatives the bank undertook during the year to bolster non-funded income lines.
Total Operating expenses, excluding loan loss provision, grew 14percent to Sh5.7 billion reflecting the Bank’s continued investment in talent, technology and new branches.
Net loans and advances grew by 14 percent in the period under review to Sh116 billion from Sh102 billion in 2014. To fund this growth in advances, customer deposits increased by 12 percent to Sh112.4 billion compared to Sh100.4 billion the prior year as a result of an increased branch network and introduction of attractive new products.
“The bank rolled out an ambitious strategic plan in 2015, to target more retail and SME business and we have started reaping the fruits of our investments. Of our various business lines Retail Banking experienced the biggest growth in profitability,” said Mr Gachora.
