Kenyan lender NIC Bank has doubled its dividend to shareholders as its profit after tax rose by 12.18 per cent.
The bank, which also has operations in Tanzania and Uganda on Wednesday said that it will pay Ksh1 ($0.011) per share for the year ended December 2012 compared to Ksh0.25 ($0.006) that was paid in a similar period 2011.
“The directors recommend the payment of a first and final dividend of Ksh1 per share (Ksh0.25 interim dividend and Sh0.25 final dividend per share,” said NIC Bank in a statement accompanying the fully-year results.
It said that the payment will be made after its annual general meeting whose date will be announced later.
Its profit after tax for the year ending December 2012 rose to Ksh3 billion ($34.7 million) from Ksh2.7 billion ($30.89 million) buoyed by interest income from loans and advances, government securities and deposits with other banking institutions which rose by 67.86 per cent.
The bank’s interest income rose to Ksh11.46 billion ($130.85 million) as at the end of December last year compared to Ksh6.831 billion ($77.956 million) in December 2011.
Interest expenses more than doubled to Ksh5.9 billion ($68.28 million) compared to Ksh2.55 billion ($29.12 million) as high interest costs ate into the interest income.
The bank’s regional subsidiaries and including its brokerage and investment banking arms contributed Ksh128.93 million ($1.47 million) to the bottom line last year, a 25.94 per cent drop from the Ksh174.08 million ($1.98 million) contributed in December 2011.