24 February 2011

Kenya: NIC Bank in 80 Percent Profit Rise After Tax

Nairobi — NIC Bank Group has reported 80 per cent growth in profit after tax for the period ending December 31 last year driven by improvements in the economy and performance of its subsidiaries.

The bank's profits increased to Sh1.8 billion from Sh1 billion last year, compared to a similar period in 2009.

"Our maiden foreign acquisition, NIC Bank Tanzania Ltd (formerly Savings & Finance Commercial Bank Ltd) recorded a significant turnaround in performance, posting satisfactory profits in 2010 compared to a loss reported in 2009," the banks group managing director Mr James Macharia said on Thursday.

Profit before tax rose to Sh2.6 for the period ending 31 December 2010, a 71 per cent increase from Sh1.5 billion recorded in a similar period in 2009.

Investors will have Sh89 million paid as dividend at Sh0.25 per share in addition to the bonus issue of one share for every ten ordinary shares.

This will bring the total dividends paid to Sh178 million after Sh89 million was paid early as interim dividend.

"The high profit retention will be retained in line for the growth of the company, which is in line with their strategy to maintain sufficient levels of capital reserves," Mr Macharia said.

The bank will also leverage on the introduction of agency banking as part of their expansion strategy and penetration.

Mr Macharia however appealed for calm arguing that effects of any rising temperature in politics will affect the performance of the economy.

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