NIC Bank in 46pc profit jump to hit Sh1.5 billion

Clients wait to be served at NIC Bank. Photo/FILE

What you need to know:

  • In the six months to June 30 this year, the bank posted Sh1.59 billion

NIC Bank has reported a 46 per cent jump in after tax profits in the first half of the year, driven by an increase in interest income.

In the six months to June 30 this year, the bank posted Sh1.59 billion, compared with Sh1.09 billion earned in a similar period last year.

The group’s managing director, Mr James Macharia, said this was a good performance despite high inflationary pressure and a difficult operating environment characterised by high interest rates.

He added: “Considering the the continuing relative instability in the financial markets and the increased geopolitical uncertainty due to the forthcoming elections, the performance is commendable.”

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Net interest income grew by 30 per cent to Sh2.5 billion, an increase from Sh1.9 billion attributable to a 32 per cent growth in the loan book to Sh2.4 billion.

The bank’s subsidiaries, — NIC Bank Tanzania, NIC Capital (Investment Banking), NIC Insurance Agents (Bancassurance) and NIC Securities (Brokerage), contributed 7 per cent of the year-on-year increase in the group’s profit before tax.

“The group’s investment banking arm, NIC Capital, is now a key player in both equity and debt capital markets” said Mr Macharia, adding: “NIC Capital has been retained as the transaction advisor in a number of significant mandates, whilst NIC Bank Tanzania has enabled us to serve our Kenyan customers with operations in Tanzania with relative ease and convenience”.