NIC Group Plc 1H18 Earnings Update
NIC Group Plc (NSE: NIC) released 1H18 financial results reporting a 2.1% decline in Profit after Tax (PAT) to KES 1.99Bn from KES 2.03Bn in 1H17. The decline was primarily attributed to Net Interest Income (NII) which decreased 4.9% y/y to KES 5.1Bn, following a 30.0% y/y rise in interest expense which outpaced the 8.6% y/y growth in interest income. Non-interest Revenue (NIR) grew 7.0% y/y to KES 2.15Bn compared to KES 2.01Bn in 1H17. Total operating expenses remained muted, declining 1.2% y/y, attributed to a 23.0% decrease in Loan Loss Provisions (LLP), while staff costs rose 7.7% to KES 1.7Bn. The balance sheet grew 6.0% y/y driven primarily by a 10.5% y/y growth in customer deposits. Investment in government securities increased 28.3% y/y to KES 53.2Bn, with the loan book declining 1.5% y/y to KES 115.0Bn as the bank continues to grapple with the effects of the Banking (Amendment) Act 2015. We maintain our BUY recommendation on NIC Group Plc at a target price of KES 53.13. This represents an upside potential of 56.3% from the current market price of KES 34.00.
Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:
- i. Securities(Equity/Debt) Trading
- ii. Research
- iii. Wealth Management services
- iv. Investment Advisory & Management via the GenCap Unit Trusts
- v. Corporate Finance & Transaction Advisory services
The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.