NIC Bank is set to send 32 senior managers home in a bid to cut on operational costs.
This came as the bank announced a 6.3 per cent drop in profits for its quarter three ended September. The profit fell to Sh. 3.3 billion compared to Sh. 3.5 billion the bank had posted in the same period a year earlier.
The drop in profits was blamed on bad loans. For instance, the bank’s provision of bad loans increased by five times to Sh. 3.1 billion. Loans that have not been serviced in three months grew to Sh. 14.2 billion from Sh. 6.8 billion.
Meanwhile, its loans book decreased from Sh. 112 billion to Sh. 110 billion by end of September.
In the third quarter period, NIC Bank’s payroll costs increased by 2.3 per cent to Sh. 2.2 billion. In the same vein, by the end of its 2015 financial year, NIC had a staff totaling to 1,111, which was a growth of 400 new employees from the 2011 financial year.
