NIC BANK: REAPING MORE FROM LESS.

According to unaudited figures to March released last week, Kenya's NIC Bank is likely to end this financial year reaping more from less, all things being equal.

One of the things that must be equal is the trend showcased by the figures which resulted in marginal profit before tax to 1368.6m Ksh (by 2.19%)  from double digit decline in total income to 5301.2m Ksh (13.7% down).

The total income decrease was heralded by 13.9% drop in interest income to 4312.2m and 13.1% decline in Other operating income to 989m Ksh.

On its part, the decline in Other operating income in spite of 18.7% increase in Other fees to 217.4m Ksh and in fee and commission by 4.44% to 336.7m Ksh, due principally to 58.9% decrease in Other income to 134.2m Ksh aided by 1.44% drop in forex trade income to 300.7m Ksh.

It was then left for reduced cost pressure to help NIC Bank the tide of income decrease. Help came from 21.8% decrease in interest expense to 1605.1m Ksh; 29.4% decline in loan loss provision to 875.3m Ksh and 26.4% drop in Directors fees to 36.3m Ksh.

Less helpful was marginal 1.78% decrease in Other Operating expenses to 469.1m Ksh; 2.25% increase in rental expense to 45.5m Ksh but certainly not helpful was 12.4% increase in staff costs to 717.2m Ksh.

When all these counter pressures balanced out, by March from double digit drop in total income, NIC Bank reaped only 2.19% decrease in profit before tax to 1368.6m Ksh.

Not bad because with the resultant 25.8 Ksh profit on each 100Ksh income, compared to 22.8 Ksh previously, NIC Bank showed some resilience amidst not favourable illwind.

Of course, it could deliberately do more to control costs even if it is at the mercy of stretched income streams.

NIC BANK: Quarter, Kshm
                              2017.          2016
Gross income    5301.2.      6144.8
Interest income 4312.2.     5007.3
Interest cost.      1605.1.     2052.5
Other op. Income 989.0.    1137.5
Loan loss.             875.3.     1315.1
Staff costs.           717.2.       637.8
Directors fees        36.3.         49.3
Rental                     95.5.          93.4
Other op. Costs  469.1.        477.6
Profit before tax 1368.6.   1399.3
Profit margin%      25.8.        22.8

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