NIC Group has posted a net profit of Sh4.3 billion for the year ending December 31, 2016 to represents a three per cent drop year on year.
Operating profit during the period rose by 23.2 per cent to Sh9.9 billion, representing strong growth in the bank’s core business.
Total operating income for the year grew by 17.4 per cent to Sh16.1 billion compared to Sh13.7 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 funded and non-funded income lines.
In the period under review, the group’s net profit was weighed down by significant additional provisions taken to support the non-performing facilities of a few large corporate customers that were impaired in 2015. The overall NPL ratio however declined year-on-year, from 11.2 to 10.8 per cent.
“2016 was a challenging year with various factors impacting our operating environment but our strategic shift to reach more retail and SME businesses, as well as branch expansion, continued to drive our performance. NIC Bank continued to roll out strategic partnerships over the course of the year to drive business growth especially around Asset Finance where we continue to be the clear leaders,” said NIC Bank’s Group Managing Director, John Gachora.
The Group reported an increase in total assets of Sh3.7 billion, while customer deposits remained flat.
The Group’s capital base for the period closed at Sh30.3 billion, a growth of Sh4.0 billion over 2015, with key banking regulatory ratios in excess of the minimum thresholds set by the Central Bank of Kenya.
Total Operating expenses, excluding loan loss provision, grew 9.3 per cent to Sh6.2 billion reflecting the bank’s continued investment in technology and new branches.