NIC's loan losses provisions increased nearly fourfold to Sh1.1 billion from Sh297 million in 2012 after its volume of non-performing loans tripled to Sh1.9 billion last year.
Total operating expenses ballooned 40 per cent or Sh1.6 billion to Sh5.4 billion on the back of increases staff costs and expenses set aside as an allowance for bad loans.
The bank has however moved to appease shareholders with a bonus issue in the ratio of one new share for every 10 held – and kept total dividend payout at Sh1 a share.
NIC saw its deposit costs drop to Sh4 billion from Sh5.7 billion, translating to savings of Sh2.6 billion that is higher than the additional profit of Sh1.7 billion.
The regional lender has operations in
NIC, closely watched by the family of the late
The bank's loan book grew by Sh11.9 billion last year to Sh83.4 billion while customer deposits was Sh91.5 billion as at
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