• National Insurance Corporation
  • XUGA:NIC KAMPALA/Uganda
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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

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Name Title Officer Since
Mr Moses Dhizaala Chairman 2015
Mr B.S Dhaka Managing Director 2015

KEY STOCK DATA

  • Profits
  • $2.61M
  • P/E Ratio
  • 1.6
  • Return on Equity
  • 11.75%
  • Dividend Yield
  • 6.62%
  • Related Companies
  • Company % Change Revenue
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Revenue per year in US $
Revenue is the money a company recieves for selling its goods or providing services. The higher the revenue, the better the company is performing.

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Nakumatt is in talks with banks to restructure a Sh8 billion loan including lengthening the repayment period to offer relief to the ailing retailer.

The retail chain’s management and the lenders on Tuesday met Trade Principal Secretary Chris Kiptoo to brief him on the talks.

“The meeting was just to brief us about the progress. We are hoping that by next week they will have reached an agreement,” said Dr Kiptoo.

He added that the Government would not be giving the retailer any money but would continue to act as a mediator, not an active party in the talks.

The 10 banks in the list include major players Standard Chartered, Kenya Commercial Bank, Stanbic Bank, NIC bank, Barclays Bank and Diamond Trust Bank.

Others who may suffer losses if the retailer does not survive are Bank of Africa, Oriental, Habib Bank and Guaranty Trust Bank.KCB and DTB, which host the retailer’s Nakumatt Global card, declined to comment on the talks. Solid plan Nakumatt also said they would not like to comment on the restructuring until a solid plan was agreed upon. It, however, admitted on social media that the redemption of shopping loyalty points had been suspended.“The redemption is temporarily unavailable. We will inform you once it resumes,” Nakumatt said on its twitter account in response to a Mr Tsisaga Jumba.The restructuring process came as Central Bank of Kenya Governor Patrick Njoroge fired a warning shot at banks over loans that would go into default.

The National Social Security Fund (NSSF) board has stopped collecting interest on a loan to Uganda Clays Limited (UCL), where the pension fund is the majority shareholder, as it seeks to convert its debt to equity and sell off part of its new stake to new investors.

The loan, worth sh16.7b in 2014, is now worth 23.2b.

“On the company’s request, the board of NSSF resolved to cap the interest accrual on the loan with effect from June 30, 2015,” Martin Aliker, the Uganda Clays Limited board chairman, says in the company financial statements.

“The company and the NSSF have agreed in principle to convert the entire loan and interest into equity. The details of the transaction are being negotiated.

“Once an agreement is reached, the shareholders will be duly informed and all regulatory approvals will be sought from the CMA (Capital Markets Authority) and the USE (Uganda Securities Exchange) prior to completion of the transaction,” adds Aliker.With 32.5% shareholding, NSSF holds the largest stake in UCL.In barely six months, the NSSF loan had accrued interest worth sh3.5b in the first half of 2015.NSSF is closely followed in ownership of Uganda Clays by the National Insurance Corporation (NIC) at 17.8%.Other notable shareholders include Kenya power and lighting company, Eliphaz Maari, Timothy Mutebile, Joseph Tukuratiire, Central Bank of Kenya pension fund, Bank of Uganda Staff Retirement Scheme and the Uganda Development Bank.

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.

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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.