NIC Bank

Last updated

NIC Bank Kenya Plc
Public company
Industry Financial Services
Founded2017 (2017)
Headquarters
Nairobi
,
Kenya
Key people
J.P.M.Ndegwa
Chairman
John Gachora
Group Managing Director [1]
Products Loans, Savings, Transaction accounts, Investments, Debit Cards, Credit Cards
RevenueIncrease2.svgAftertax:US$37.6 million (KES:3.246 billion) (2013)
Total assets US$1.308 billion (KES:112.92 billion) (2013)
Number of employees
783 (2012)
Parent NIC Bank Group
Website www.nic-bank.com

NIC Bank, whose full name is NIC Bank Kenya Plc, is a commercial bank in Kenya. It is licensed by the Central Bank of Kenya, the country's central bank and national banking regulator. [2]

A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

Kenya republic in East Africa

Kenya, officially the Republic of Kenya, is a country in Africa with 47 semiautonomous counties governed by elected governors. At 580,367 square kilometres (224,081 sq mi), Kenya is the world's 48th largest country by total area. With a population of more than 52.2 million people, Kenya is the 27th most populous country. Kenya's capital and largest city is Nairobi while its oldest city and first capital is the coastal city of Mombasa. Kisumu City is the third largest city and also an inland port on Lake Victoria. Other important urban centres include Nakuru and Eldoret.

Central Bank of Kenya central bank

The Central Bank of Kenya (CBK) is the monetary authority of Kenya. The Bank's Head Office is located in Nairobi. CBK was founded in 1966 after the dissolution of East African Currency Board (EACB). Dr. Patrick Ngugi Njoroge is current Governor of CBK and Ms. Sheila M’Mbijjewe the Deputy Governor.

Contents

Overview

NIC Bank is part of NIC Bank Group, a large financial services provider in East Africa. Headquartered in Nairobi, Kenya. The group owns subsidiary companies in Kenya, Uganda and a controlling interest (51% shareholding), in NIC Bank Tanzania, a commercial bank in neighbouring Tanzania.

Nairobi Capital city in Nairobi County, Kenya

Nairobi is the capital and the largest city of Kenya. The name comes from the Maasai phrase Enkare Nairobi, which translates to "cool water", a reference to the Nairobi River which flows through the city. The city proper had a population of 3,138,369 in the 2009 census, while the metropolitan area has a population of 6,547,547. The city is popularly referred to as the Green City in the Sun.

National Industrial and Commercial Bank Tanzania Limited, commonly known as NIC Bank Tanzania (NICBT) and formerly known as Savings and Finance Commercial Bank (SFCB), is a commercial bank in Tanzania. It is licensed by the Bank of Tanzania, the central bank and national banking regulator.

Tanzania Country in Africa

Tanzania officially the United Republic of Tanzania, is a country in eastern Africa within the African Great Lakes region. It borders Uganda to the north; Kenya to the northeast; Comoro Islands at the Indian Ocean to the east; Mozambique and Malawi to the south; Zambia to the southwest; and Rwanda, Burundi, and the Democratic Republic of the Congo to the west. Mount Kilimanjaro, Africa's highest mountain, is in north-eastern Tanzania.

As of September 2017, NIC Bank's total asset base was valued at about US$1.76 Billion (KES 181.86 Billion), with shareholder's equity of approximately US$271.69 Million (KES 28.08 Billion). [3] At that time, the bank was ranked position 10, by assets, out of 43 license banks in the country. [4]

History

NIC Bank Kenya Plc roots trace back to 1959 when its parent company, NIC Group, was formed as a joint venture by Standard Bank Limited and Mercantile Credit Company Limited, both headquartered in South Africa and the United Kingdom respectively. NIC was initially a non-bank financial institution (NBFI). [5]

A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly emerging markets; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities.

Standard Bank (historic) former British overseas bank

The Standard Bank was a British overseas bank, which operated mainly in Africa from 1863 to 1969. It merged with the Chartered Bank in 1969 to form Standard Chartered.

South Africa Republic in the southernmost part of Africa

South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by 2,798 kilometres (1,739 mi) of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans; to the north by the neighbouring countries of Namibia, Botswana, and Zimbabwe; and to the east and northeast by Mozambique and Eswatini (Swaziland); and it surrounds the enclaved country of Lesotho. South Africa is the largest country in Southern Africa and the 25th-largest country in the world by land area and, with over 57 million people, is the world's 24th-most populous nation. It is the southernmost country on the mainland of the Old World or the Eastern Hemisphere. About 80 percent of South Africans are of Bantu ancestry, divided among a variety of ethnic groups speaking different African languages, nine of which have official status. The remaining population consists of Africa's largest communities of Whites, Asian (Indian), and multiracial (Coloured) ancestry.

NIC Bank Kenya Plc was incorporated in 2016 as a result of the corporate reorganization of NIC Bank Group. Prior to January 2017, NIC Bank Group operated both as a licensed bank and a holding company for its subsidiaries. [6]

On 12 September 2016, NIC Bank Group announced its intention to incorporate a new wholly owned subsidiary, NIC Bank Kenya Plc, to which it would transfer its Kenyan banking business, assets and liabilities. The rationale for the re-organisation is that by converting NIC Bank Group into a non-operating holding company (as defined under the Banking Act) that owns both banking and non-banking subsidiary companies in order to support the Group’s medium and long term strategy. [6] [7] The group reorganization was completed on 31 August 2017 upon approval from shareholder and the regulators. [8]

In 2017, the Central Bank of Kenya appointed NIC Bank as asset and liabilities consultant for Imperial Bank Limited (in receivership). Effectively, NIC Bank took over the responsibility of returning funds to the failed bank's deposit customers. The agreement also allows NIC to acquire some of the deposits, assets and liabilities of Imperial once its receiver manager the Kenya Deposit Insurance Corporation starts liquidating the bank. [9] [10]

In December 2018, NIC Group announced that it would be merging with Commercial Bank of Africa Group (CBA) creating the Kenya's third-biggest bank. [11] The merger involved the group acquiring the entire shareholding of the transfer of CBA through NIC Bank Kenya and transferring the business of NIC Bank Kenya to CBA. The Transaction was approved by the Kenyan regulators and shareholders by April 2019. [12] [13] As of 18 May 2019, the merged group was still operating two bank sets of banks in Kenya, Uganda and Tanzania but was in the process of seeking regulatory approval to merge these business so that they can have one bank in each country and a group rebranding. [7]

Branch network

As at January 2018, NIC Bank had over 41 branches in Kenya. [14] [15]

NIC Bank's partnership with the Kenya Post Office Savings Bank enabled the provision of cash collection services for its customers through Postbank’s network of 94 branches in Kenya. [16]

NIC Bank Group

NIC Bank together with its subsidiaries, which it owns, either wholly or partially, form the NIC Bank Group. Members of the group include: [17]

  1. NIC Bank Kenya – Retail banking – Nairobi, Kenya Flag of Kenya.svg 100% Shareholding
  2. NIC Capital – Investment banking – Nairobi, Kenya Flag of Kenya.svg 100% Shareholding
  3. NIC Capital Securities – Securities brokerage – Nairobi, Kenya Flag of Kenya.svg – 100% Shareholding
  4. NIC Bank Tanzania – Retail banking – Dar es Salaam, Tanzania Flag of Tanzania.svg 69% Shareholding
  5. NC Bank Uganda – Retail banking – Kampala, Uganda Flag of Uganda.svg 100% Shareholding.

Governance

The activities of NIC Bank are directed by eleven board of directors. The Managing Director is assisted by seven other 10 other senior Officers in supervising the day-to-day activities of the Bank. [18]

See also

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References

  1. ↑ Corporate, News (25 July 2013). "NIC Bank Hires Barclays Executive As CEO". Business Daily Africa (Nairobi). Retrieved 5 August 2014.
  2. ↑ CBK, . "Directory of Commercial Banks And Mortgage Finance Companies" (PDF). Central Bank of Kenya (CBK). Retrieved 5 August 2014.
  3. ↑ NICBK, . (14 March 2014). "Audited 31 December Financial Statement of NIC Bank Kenya" (PDF). NIC Bank Kenya (NICBK). Retrieved 6 August 2014.
  4. ↑ Bankelele, . (28 April 2014). "Kenya Bank Rankings By Assets In 2013". Bankelele.Co.Ke. Retrieved 5 August 2014.
  5. ↑ NICBK, . "The History of NIC Bank". NIC Bank Kenya (NICBK). Retrieved 6 August 2014.
  6. 1 2 "Circular to Shareholder - 12 September 2016" (PDF). 12 September 2016. Retrieved 19 May 2019.
  7. 1 2 "NIC Bank Limited shareholders approve reorganisation in an Extraordinary General Meeting" . Retrieved 19 May 2019.
  8. ↑ "NIC to finalise reorganisation this month". Business Daily Africa . NMG. 10 August 2017. Retrieved 19 May 2019.
  9. ↑ Juma, Victor (21 June 2016). "NIC to compensate Imperial Bank depositors in new deal". Business Daily Africa . Nairobi. Retrieved 21 June 2016.
  10. ↑ Anyanzwa, James (21 June 2016). "NIC to compensate Imperial Bank depositors in new deal". The EastAfrican . Nairobi. Retrieved 21 June 2016.
  11. ↑ "NIC Bank and CBA Group In Merger Talks to Create 3rd Largest Kenyan lender". Kenyan WallStreet. 7 December 2018. Retrieved 18 May 2019.
  12. ↑ "Regulator approves CBA-NIC merger on condition of employees retention". Business Daily Africa. NMG. 13 May 2019. Retrieved 18 May 2019.
  13. ↑ "Kenya's NIC Group shareholders back merger with CBA". Reuters. 17 April 2019. Retrieved 18 May 2019.
  14. ↑ "NIC Bank Branch Network". NIC Bank Group. Retrieved 22 October 2014.
  15. ↑ "Information Memorandum | NIC Rights Issue" (PDF). NIC Bank Group. 2 October 2014. Retrieved 23 October 2014.
  16. ↑ "NIC Rights Issue | Information Memorandum" (PDF). NIC Bank Group. 17 July 2012. Retrieved 22 October 2014.
  17. ↑ Wangalwa, Elayne (23 July 2014). "NIC Bank H1 Profits Up". CNBC Africa . Retrieved 6 August 2014.
  18. ↑ Business Daily, Reporter (25 July 2013). "NIC Bank Taps Diaspora for New Chief Executive". Business Daily Africa (Nairobi). Retrieved 6 August 2014.
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