NIC Bank Group has posted a net profit of Sh2.30 billion for first half of the year boosted by a 27 per cent increase in interest income.
Profit after tax grew by a modest 2.8 per cent compared to
Sh2.24 billion netted in a similar period last year.
Non-performing loans shot up by 90.62 per cent to Sh12.01 billion from Sh6.30 billion previously.
Financial results released late Wednesday show the loan book grew 3.5 per cent to Sh112.15 billion from Sh108.30 billion.
Interest income was up by 27.44 per cent from Sh7.73 billion to Sh9.85 billion.
Deposits increased to Sh112 billion from Sh105 billion.
Total operating income grew by 26.25 per cent to Sh8.23 billion compared to Sh6.52 billion the same period last year.
Managing
director John Gachora attributed the bank’s performance to concerted
efforts by management to focus on growing the retail segments, channels
and product offering in line with the bank’s long term strategy.
“The
bank’s strategy to grow its retail and SME segments is bearing fruit,
with customer accounts growing by 17 per cent and profitability of the
retail division tripling year on year,” he said.
