NIC Bank has recorded a flat profit before tax of Sh1.37 billion for the first quarter of 2017 compared to Sh1.40 billion it reported a year earlier, this despite posting 5 per cent growth in pre-tax to close the quarter at Sh1.3 billion.
This growth was despite the impact of the interest rate capping law as well as reduced Non Funded Income as a result of lower Bond Trading activity since the start of the year.
The lender’s net profit was weighed down by provisions taken to support non-performing facilities of a few large corporate customers that were impaired in 2015.
The bank’s operating expenses grew by Sh74million, a 5 per cent change, as it increased its staffing to support the 7 new branches opened over the course of 2016.
Total assets closed the period at Sh173.8 billion compared with Sh160.9 billion a year ago, funded by a Sh7.5 billion increase in customers deposits and Sh5.5 billion increase in long term borrowings drawn in December 2016.
Meanwhile, NIC bank yesterday said it has concluded the handover process as consultants for Imperial bank
NIC bank has concluded the handing over process as the Asset and Liability Consultant for Imperial Bank Limited (in Receivership).
On June 21, 2016, the Kenya Deposit Insurance Corporation (KDIC), following the nod by Central Bank of Kenya (CBK) appointed the lender to act as the Asset and Liability consultant for IBLIR.
The bank undertook, on behalf of the KDIC, an assessment of the quality of IBLIR’s assets and liabilities, supported the loan recovery process and provided guidance on other assets and IBLIR staff.
The NIC Bank appointment came to an end on April 13th, 2017, following the conclusion of the 18 month initial Receivership period.
NIC Bank made two disbursements totaling Sh10.78 billion to over 5,500 depositors on behalf of KDIC, as well as collection of over Sh5 billion from borrowers, restructure loans, resolve several outstanding depositor and custody account issues and put in place a process to resolve items in transit.
“As we said from the very beginning, our involvement in this process has always been in the wider public interest and to support the depositors, creditors, employees and other stakeholders of IBLIR. I believe the advice we have provided to KDIC, if followed, will maximize value for these constituents,” said NIC managing director John Gachora.
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