NIC Bank has reported a 35% growth in profits after tax in 3rd quarter results for the 9 months ending September 30th 2012. The bank which had a Rights Issue in the 2nd quarter of the year has reported a profit of after tax of KES 2.39 billion in September 2012 up from KES 1.77 billion reported the same period last year.
The banks customer deposits stood at KES 76.14 billion for the period under review from KES 57.95 billion reported the same period last year.In the period, the bank paid interest on customer deposits amounting KES 4.27 billion up from KES 1.26 billion it earned the same period last year.
The banks loan book for the period stood at KES 60.10 billions up from KES 50.55 billion a year earlier. Riding on high interest that commercial banks have been benefiting from for most of the financial year, NIC bank earned interest amounting to KES 6.96 billion in the 9 months up to September 2012 up from KES 3.62 billion the bank earned in September 2011 from the loans and advances to customers.
NIC Bank raised KES 2 billion through the rights issue, oversubscribed by 238%, that sought capital to fund the bank’s regional expansion. The Groups Managing Director James Macharia said proceeds of the rights issue will be used to finance the expansion of NIC Bank in Kenya and in the Eastern African region.
NIC Bank Group reported a 42% growth in half-year profit before tax in June, operating in a harsh environment characterized by high interest rates, continuing relative instability in the financial markets and a high inflation rates then.