Financial Statements 2011 - Investing In Africa

Report Of The Directors
The Board of directors has pleasure in submitting their annual report together with the audited financial statements for the year ended
31 December 2011 in accordance with Section 22 of the Banking Act and Section 157 of the Kenyan Companies Act which discloses,
the state of affairs of the Group and the Bank.
1. ACTIVITIES
The principal activities of the Group are the provision of retail and corporate banking, brokerage, bancassurance and investment
banking services.
2. RESULTS FOR THE YEAR
The Group profit for the year of Shs 2,707,137,000 (2010: Shs 1,863,918,000) has been added to revenue reserves.
3. DIVIDENDS
An interim dividend of Shs 0.25 per share amounting to Shs 98,724,000 was paid to shareholders on 5 October 2011.
The Board has resolved to recommend to the shareholders at the forthcoming Annual General Meeting, scheduled for 2 May
2012, the payment of a final dividend for the year of Shs 0.25 (2010: Shs 0.25) for every ordinary share of Shs 5. The dividends
will be payable to the shareholders registered on the company’s register at the close of business on 29 March 2012 and will be
paid on or after 2 May 2012. The register will remain closed for one day on 30 March 2012.
4. REGIONAL EXPANSION
In line with its regional expansion strategy, the Board of Directors has approved the establishment of a commercial banking
subsidiary in Uganda. The establishment of this subsidiary is subject to the ratification by the shareholders at the Annual
General Meeting. The capital injection for this investment is Shs 961m (Uganda Shillings 25 billion).
5. CAPITAL
The directors recommend for approval at the upcoming Annual General Meeting an increase in the authorized share capital
and the raising of additional capital of Shs 2 billion through a rights issue. The increase in the authorized share capital and the
rights issue are also subject to the necessary regulatory approvals.
6. DIRECTORS
The directors who held office during the year and to date are shown on page 20. In accordance with articles 108, 109 and 110
of the Articles of Association, M L Somen, P V Shah and F N Mwanzia retire by rotation and, being eligible offer themselves for
re-election.
7. AUDITORS
Deloitte & Touche, having expressed their willingness, will continue in office in accordance with section 159 (2) of the Companies
Act and subject to section 24(1) of the Banking Act.
8. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the Board of Directors on 22 February 2012.
BY ORDER OF THE BOARD
L. Murage
Group Company Secretary
Nairobi
22 February 2012
30 • NIC Bank Limited • Annual Report & Financial Statements 2011