• National Insurance Corporation
  • XUGA:NIC KAMPALA/Uganda
  • 12.00 UGX
  • 0.00 0.00%
  • As of 2017/05/26
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  • About the Company
  • NIC is the only insurance company in Uganda that is listed on the Uganda Securities Exchange. Has both a general insurance and life insurance arms
  • National Insurance Corporation Limited is a Uganda-based company engaged in the provision of general and long term insurance services and related activities.

    The Company’s segments include General business and Long term business. The General business offers non-life insurance to individual customers and businesses throughout Uganda. The Long term business offers life insurance products to individual customers and businesses throughout Uganda. Its general business includes workmen compensation/employer liability, burglary insurance, fire and special perils, goods in transit, contractors all risks, personal accident, cold storage, machinery break down/boiler expenses, marine and aviation hull and liabilities, oil and energy, physical damage, goods in transit, bonds and marine. Its long-term business includes group life, individual life, education endowment, dividend plus plan, mortgage, personal pension and annuity, international health and medical insurance and travel insurance.

    Address

    P.O. Box 7134
    Kampala
    Uganda

    Website
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After a low of $149m in net revenues in 2013, net revenues have grown 7.7% this year slower than last year when they grew at 10%. With this growth they have not recovered to their 5-year peak of £170m
Revenue per year in US $ The higher, the better.
Profits have increased for the last 3 years $47.3m but have not recovered to peak of $51.8m in 2012
Profits per year in US $ The higher, the better.
Profit margins have remained below 30% despite increase in profits indicating a struggle to keep control of costs.
Profit Margin compared to competitors The higher, the better.
Stanbic has maintained return on assets above 3% which is double the global average but is still below the local average.
Management of Assets compared to competitors The higher, the better.
Costs as a percentage of revenue is at 62.82% significantly lower than its peak of 69.85% in 2013. This cost percentage is a lot better than the local average but worse than African average.
Management of Costs compared to competitors The lower, the better.
Cash generation by Stanbic has halved since 2012 but better than 2013 when cash generation was negative due to increased losses in government securities.
Cash Generation compared to competitors The higher, the better.
Assets are currently 90% financed by banks, this may seem high but is similar for both local and African banks. This dependence on debt has reduced slightly over the last few years
Level of Debt compared to competitors The lower, the better.
Stanbic Bank can comfortably cover its immediate debts similar to all local banks. The margin between the liquid assets and current liabilities for Stanbic is lower than other local banks but this has been driven by a drastic increase in customer deposits.
Ability to pay debt compared to competitors The higher, the better.
The available cash (working capital) has increased by 70% over the last 5 years from $112m to $191m. This shows that Stanbic has become more efficient and healthier. This enables that Stanbic to invest more money within the business.
Liquidity/Cash Availability compared to competitors The higher, the better.
Revenues have grown slower than other local banks but the growth in profits has been faster than its local peers. In 2013, Stanbic experienced a 12% drop in profits and 33% drop in revenues, similar to other local banks - this drop in earnings was due to slowdown following the 2011 Ugandan election.
Revenue Growth compared to competitors The higher, the better.
Profit Growth compared to competitors The higher, the better.
Stanbic continues to have pay out the highest level of dividends in Uganda and Africa. Currently Stanbic pays out 3% of its share price but this is half of what it paid out the previous year. This is different from other local banks where dividends have gone back.
Despite Stanbic having high levels of dividend, this drop in dividend yield raises concern about how long this will be sustained.
Return on Equity compared to competitors The higher, the better.
Dividend Yield compared to competitors The higher, the better.
Stanbic Uganda has increased the investment in the business since 2011, and is doing it at the highsest levels both locally and in Africa.
Level of Investment per year in US $ The higher, the better.
Investment Ratio compared to competitors The higher, the better.

A law capping interest rates continues to pile pressure on Kenyan banks, with at least three banks posting a drop in earnings in the first quarter of this year.

NIC Bank, Stanbic Bank and Kenya Commercial Bank (KCB) posted 3.9 percent, 9.3 percent and 1.9 percent decline in profit, with the performance attributed to the capping of loan rates.

Kenya introduced the law to cap interest rates in the third quarter of 2016, with the move aimed at deepening access to credit especially among small borrowers.

The rates were capped at 4 percent above the Central Bank Rate which currently stands at 10 percent. Banks, therefore, are currently charging borrowers a maximum of 14 percent, down from between 18 and 28 percent.

The result, however, is that commercial banks are reeling from the effects of the reduced earnings as the law leads to unintended outcomes, including layoffs and slow credit growth.

Financial results of the three banks released last week indicated the squeeze the banks are facing following the implementation of the law. KCB posted a 1.9 decline in core earnings per share to 14.4 billion U.S. dollars from 15 billion dollars.

Stanbic and NIC Bank have kicked off what is likely to be a “new normal” for banking industry, underpinned by reduced profitability.

The industry is grappling with a growing rate of loan defaults which started in 2015, amid interest controls to protect borrowers from high loan charges and tight regulations to enhance sound corporate governance.

Stanbic Bank on Friday became the second medium-sized lender to report a drop in net profit for three months through March 31, largely on rising bad debt and reduced interest earnings.

Stanbic’s profit after taxation slowed by 9.24 per cent to Sh1.08 billion from Sh1.19 billion it posted 12 months earlier.

Net interest earnings contracted by 12.23 per cent to Sh2.44 billion, the country’s eighth largest lender by market share said in a financial statement. The bank, however, advanced Sh11.81 billion, or 11.40 per cent, more loans to hit Sh115.37 billion in the first quarter of the year compared to the year before.

Non-performing loans over the period jumped by nearly a third, rising 29.73 per cent to Sh5.76 billion resulting in a 32.80 per cent rise in provisions to Sh1.66 billion. 

Kenya’s top 10 banks registered a 10.8 per cent growth in net earnings to Sh93.81 billion for the financial year ended December 31, 2016.

The growth was despite four of the lenders – Equity Bank, Barclays Bank of Kenya (BBK), Stanbic Bank and NIC Bank – registering a drop in profits after tax.

Kenya Commercial Bank (KCB), Equity Bank and Co-operative Bank remained the top three most profitable lenders respectively and also the only ones with double-digit-billions profits.

However, for the first time in over 10 years, Equity recorded a drop (5.9 per cent) in profits. Despite KCB Group recording a 0.5 per cent growth in profits, the slowest pace in seven years, KCB Bank saw its after-tax profit soar by 19.9 per cent to Sh19.78 billion.

At the same time, Co-operative Bank registered a 24.6 per cent growth in profit to Sh13.05 billion.

National Insurance Corporation Limited is a Uganda-based company engaged in the provision of general and long term insurance services and related activities.

The Company’s segments include General business and Long term business. The General business offers non-life insurance to individual customers and businesses throughout Uganda. The Long term business offers life insurance products to individual customers and businesses throughout Uganda. Its general business includes workmen compensation/employer liability, burglary insurance, fire and special perils, goods in transit, contractors all risks, personal accident, cold storage, machinery break down/boiler expenses, marine and aviation hull and liabilities, oil and energy, physical damage, goods in transit, bonds and marine. Its long-term business includes group life, individual life, education endowment, dividend plus plan, mortgage, personal pension and annuity, international health and medical insurance and travel insurance.

Address

P.O. Box 7134
Kampala
Uganda

Website

IPSL Chief Executive Officer, Jennifer Theuri says they hope to raise the number of banks using Pesalink in the next few weeks So far, 22 commercial banks are part of the network allowing customers to move money across banks through the app. The banks include; I&M Bank Kenya, CBA, First Community Bank, Paramount Bank, Jamii Bora Bank, ABC Bank, Bank of Africa, Spire Bank and Equity Bank.

Other Banks are; Cooperative Bank, Barclays Bank of Kenya, Credit Bank Ltd, DTB, Guardian Bank, Middle East Bank, NIC Bank, Standard Chartered Bank, Prime Bank, Victoria Bank, Gulf African Bank, Consolidated Bank and Stanbic Bank.

The service affords bank customers registered on the platform to make real-time interbank payments, around the clock, without having to go through any intermediaries on any of the five bank channels including; Mobile devices, Internet, Automated Teller Machines (ATM), Bank Branches or Commercial Bank Agency outlets.

The platform allows the registered users to transact as low as Sh10 to as much as Sh999, 999 across the banking system at a low cost comparatively.

Founded under the Central Bank of Kenya’s National Payments System (NPS) guidelines, the platform has been developed to provide interoperability and related FinTech solutions for banks.