The group saw net interest income increase to 5.4 billion Kenyan shillings while total operating income increased by 27 per cent to 7.8 billion Kenyan shillings.
“Despite the geopolitical uncertainties that led to the slowdown in business activity associated with the March 2013 general elections, the group has achieved good results on the back of increased lending and declining interest costs on deposits,” said NIC Bank group managing director, John Gachora.
Profit after tax rose 18 per cent from 2.4 billion Kenyan shillings to 2.8 billion Kenyan shillings and total operating expenses, excluding provisions for bad debts, grew 26 per cent to 3.2 billion Kenyan shillings.
“Most macro-economic variables are looking favourable for the Kenyan economy although some downside risks still remain, but the outlook for 2014 looks promising,” said Gachora.
A new core banking system, which was implemented last year, has also given the bank’s customers the flexibility they require.
“The new system provides a unique opportunity to revamp the group’s products and business processes, enhance operational efficiency and will in the long run, provide substantial cost savings,” he added.
Gachora also indicated that NIC Bank Group would seek to leverage on emerging opportunities that would maintain and enhance the value of the franchise, and that this would be done within the framework of the group’s strong risk management structures and processes.