NIC Bank

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For other uses, see NIC Bank Tanzania and NIC Bank Uganda.
NIC Bank
Type Public company: NSE: NINC
Industry Financial Services
Founded 1959
Headquarters Nairobi, Kenya
Key people J.P.M.Ndegwa
Chairman
John Gachora
Managing Director[1]
Products Loans, Savings, Checking, Investments, Debit Cards, Credit Cards
Revenue IncreaseAftertax:US$32.4 million (KES:2.71 billion) (2011)[2]
Total assets US$945 million (KES:79 billion) (2011)
Employees 596 (2011)
Website Homepage

NIC Bank, whose full name is National Industrial Credit Bank, is a commercial bank in Kenya. It is one of the commercial banks licensed by the Central Bank of Kenya, the country's banking regulator.[3]

Overview[edit]

NIC Bank is a large financial services provider in East Africa. Headquartered in Nairobi, Kenya, the bank owns subsidiary companies in Kenya, Uganda and a controlling interest (51% shareholding), in NIC Bank Tanzania, a commercial bank in neighbouring Tanzania. In May 2012, NIC Bank opened a 100% subsidiary, NC Bank Uganda. As of December 2011, NIC Bank's total asset base was valued at about US$945 million (KES:79 billion), with shareholder's equity of approximatelyUS$126 million (KES:10.5 billion).[4]

NIC Bank market share stood at 4.32 per cent at the end of 2012.[5]

History[edit]

The bank was founded in 1959 as a joint venture by Standard Bank Limited and Mercantile Credit Company Limited, both headquartered in the United Kingdom at that time. NIC was initially a non-bank financial institution (NBFI). In 1971, NIC became a public company, by listing on the Nairobi Stock Exchange, where it still trades today under the symbol: NNIC.

In 1995, the Central Bank of Kenya required all NBFIs in the country to either convert to fully fledged commercial banks or close shop. NIC applied for and was granted a banking license that same year. In 1997, NIC Bank merged with African Mercantile Bank Limited (AMBank), a Kenyan financial institution.[6] In May 2009, NIC Bank acquired a 51% shareholding interest in Savings and Finance Commercial Bank, a small Tanzanian retail bank with approximately US$30 million in assets and approximately US$5 million in shareholder's equity at the time.[7][8] As of March 2011, Savings and Finance Commercial Bank has rebranded to NIC Bank Tanzania.[9] In November 2011, Kenyan press reports indicated that NIC Bank was in advanced stages of opening a banking subsidiary in neighbouring Uganda.[10]

NIC Bank Group[edit]

NIC Bank together with its subsidiaries, which it owns, either wholly or partially, form the NIC Bank Group. Members of the group include:[11]

  1. NIC Bank – Retail bankingNairobi, Kenya Kenya 100% Shareholding
  2. NIC Capital – Investment bankingNairobi, Kenya Kenya 100% Shareholding
  3. NIC Capital Securities – Securities brokerageNairobi, Kenya Kenya – 100% Shareholding
  4. NIC Bank TanzaniaRetail bankingDar es Salaam, Tanzania Tanzania 51% Shareholding
  5. NC Bank UgandaRetail bankingKampala, Uganda Uganda 100% Shareholding [12]

Ownership[edit]

The stock of NIC Bank Group listed on the Nairobi Stock Exchange, where it trades under the symbol: NINC. The detailed shareholding in the company stock is represented in the table below:[13]

NIC Bank Stock Ownership
Rank Name of Owner Percentage Ownership
1 First Chartered Securities Ltd 15.84
2 ICEA Asset Management Ltd A/c 2000 9.14
3 Livingstone Registrars Limited 8.62
4 Rivel Kenya Limited 8.29
5 Saimar Limited 4.13
6 Others 53.98
Total 100.00

Board of directors[edit]

The activities of NIC Bank are directed by a ten-person board of directors. J.P.M.Ndegwa, one of the non-Executive directors, serves as chairman.[14]

Management[edit]

John Gachora is the managing director of the bank. He is assisted by seven (7) other Senior Managers in supervising the day-to-day activities of NIC Bank.[15]

External links[edit]

See also[edit]

References[edit]