NIC Bank Group has announced a 38 per cent increase in profit after tax for the first quarter of 2012, to hit Sh723 million.

Managing director James Macharia attributes the increase in profit to growth in loan advances and an increase in non-funded income. Over a similar period in 2011, the bank reported a Sh522 million profit after tax.

The bank will be seeking an additional Sh2 billion from its shareholders by the third quarter of this year to fund its regional expansion goals and to grow its local business.

The bank, which is now operational in Tanzania and is looking to set up branches in Uganda, will be returning to the market for its second rights issue after the having one in 2007. In 2007 the bank offered 16.48 million shares through a rights issue that attracted Sh1.7 billion and an over-subscription of 49 per cent.

In 2009, NIC expanded to Tanzania by acquiring 51 per cent stake in Savings & Finance Commercial Bank.