NIC Group yesterday reported a 4.39 per cent drop in net profits for the 12 months ending December 2017, concluding its three-year strategic plan.
NIC’s profit after tax dropped to Sh4.14 billion compared to Sh4.33 billion at the end of 2016. Group managing director John Gachora said the performance was mainly driven by a reduction in interest income on loans and advances.
“NIC Group continued to make good progress in its strategic growth despite the challenging operating environment due to the interest rate cap and a protracted electioneering period,” he said.
The lender’s loan book grew 4.62 per cent to Sh119.76 billion while customer deposits expanded 24.24 per cent to Sh138.92 billion. The Group’s net interest income dropped by 11.65 per cent to Sh10.77 billion, while non-interest income rose 3.48 per cent to Sh4.16 billion. The value of gross non performing loans for the review period increased 5.37 per cent to Sh14.32 billion compared to the same period in 2016.
Gachora said the group was now embarking on a five-year strategic journey aimed at positioning the lender as a leading retail and SME Bank.
“The new five-year, 2018 to 2022, journey is critical as it is intended to refocus our efforts to become the most customer-centric financial services institution,” he said.
