NIC Bank Group 1st quarter profits up 42% 6 May 10
The asset finance specialist post an impressive 42% growth in pre-tax profits rising from Ksh372 mn (US$4.8 mn) to Ksh529 mn (US$6.9 mn). The performance was attributed to good top-line growth that saw net interest income rise 23% to Ksh657 mn (US$8.5 mn) and a weighty contribution from non interest income to rise 41% to Ksh459 mn (US$6.0 mn). The impressive growth in non funded income was driven by a 287% increase in miscellaneous income. The bank’s expense ratio declined by 420bp from 56.8% in 2009 to 52.6% in 2010 as staff costs were subdued.
NIC Bank’s core capital and capital adequacy ratios dropped marginally to 13.9% and 15.2% respectively by the end of Q1 and the bank is yet to credit its recent bonus issue. Last year the company saw its EPS rise 5% to Ksh3.01 per share and dividend payment remained flat at Ksh0.45 per share as the management favoured retaining earnings to boost capital ratios. The first quarter 2010 EPS is up 43% to Ksh1.10 per share and the company currently has a 1.9x pbv.
