NIC Bank net earnings drop 4.3%, Issues Bonus Shares
NIC Bank Kenya, whose full name is National Industrial Credit Bank, has reported its full year 2017 financial results.
Pre-tax profit declined by 9% to Sh 5.6 Billion while net profit declined by 4.3% to Sh 4.1 Billion.
Total interest income declined by 3.1% to Sh 18.4 Billion from Sh 19.0 Billion recorded in the previous year.
* Total interest expense grew by 11.5% to sh 7.6 Billion from Sh 6.85 Billion as t
* Operating expenses declined by 7% to Sh 9.337 Billion from Sh 10 Billion in the previous year.
* The lender’s investment in goverment paper went up by 78% to Sh 54.2 Billion.
* Customer deposits grew by 24% to Sh 139 Billion while loans to customers grew by 5% to Sh 120 Billion.
* Gross Non Performing Loans went up slightly by 5.4% to Sh 14.3 Billion.
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The Board has resolved to recommend to the shareholders for their approval at the forthcoming Annual General Meeting, scheduled for 25th May 2018:
* The payment of a first and final dividend for the year of Shs 1.00 per ordinary share, which will be payable to the shareholders registered on the Company’s register at the close of business on 30th April 2018. Upon receipt of shareholders’ approval, the dividend will be paid on or immediately after 25th May 2018
* Subject to regulatory approval, the bank has issued a bonus shares of one (1) new fully paid up bonus share of par value Shs 5.00 for every ten (10) ordinary shares of par value Shs 5.00 to be issued to the shareholders registered on the Company’s register at the close of business on 30th April, 2018. Upon receipt of the requisite approvals, shareholders will be credited with the bonus shares on or immediately after 25th May 2018. The Bonus shares will not be entitled to receive any dividend declared and approved for the year.