Financial Statements 2011 - Investing In Africa

Notes To The Financial Statements (Continued)
As at 31 december 2011
24) Investments (continued)
b) Investment in subsidiary companies
Bank
Cost
Name Principal Holding 2011 2010
activity % Shs `000 Shs `000
NIC Bank Tanzania Banking 51 596,285 596,285
NIC Capital Financial advisory 100 500,000 500,000
NIC Insurance Agents Insurance agency 100 1,000 1,000
National Industrial Credit Trustees Dormant 100 500 500
Mercantile Finance Company Dormant 100 50,000 50,000
The African Mercantile Banking Company Dormant 100 1 1
1,147,786 1,147,786
NIC Capital Limited has a subsidiary, NIC Securities Limited whose results have been incorporated in these financial
statements. Details of NIC Securities Limited are as follows:
Cost
Principal Holding 2011 2010
Name activity % Shs `000 Shs `000
NIC Securities Limited Brokerage services 91.3% 438,370 438,370
All the subsidiary companies have their financial year ending 31 December and are incorporated as limited liability
companies. Except for NIC Bank Tanzania Limited which is incorporated and domiciled in Tanzania, all other subsidiaries
are incorporated and domiciled in Kenya.
NIC Bank Limited acquired 51% of Savings & Finance Commercial Bank Limited now renamed NIC Bank Tanzania Ltd
with effective control being passed on 1 May 2009. The audited financial statements for the year ended 31 December
2011 show that the company made profit after tax of Shs 109,570,000 (2010 - Shs 92,757,000).
NIC Capital Limited was established in 2005 to offer investment banking services. The audited financial statements
for the year ended 31 December 2011 show that the company made a profit after tax of Shs 41,733,000 (2010–Shs
22,802,973).
NIC Capital Limited (NICCL) acquired 57.66% of NIC Securities Ltd (NICSL) (formerly Solid Investment Securities
Limited) with effective control being passed on 1 January 2008. Subsequently, substantially through rights issues,
the holding by NICCL in NICSL has increased to 91.3%. The cost of the investment as at 31 December 2011 is Shs
438,370,000 (2010 – Shs 438,370,000). NICSL offers brokerage services and is a registered broker with the Nairobi
Securities Exchange. The audited financial statements for the year ended 31 December 2011 show that the company
made a profit after tax of Shs 11,381,000 (2010 –Shs 14,182,000). The results of NIC Securities Limited are consolidated
in these financial statements.
NIC Insurance Agents Limited was a 68% owned subsidiary of Mercantile Finance Company Limited (MFC). In 2010,
NIC Bank Limited acquired the non-controlling interest and now directly owns 100% of the company. The company
offers bancassurance services. The audited financial statements for the year ended 31 December 2011 show that the
company made a profit after tax of Shs 11,427,000 (2010 – Shs 3,779,000).
National Industrial Credit Trustees Limited functions in a trustee capacity. The audited financial statements show that
the company made no profit or loss for the year (2010 - Shs nil).
Mercantile Finance Company Limited did not trade during the year ended 31 December 2011. Its activities are limited
to the recovery of its non performing debts. The audited financial statements show that the company made no profit or
loss for the year (2010 - Shs nil).
The African Mercantile Banking Company Limited did not trade during the year ended 31 December 2011. The audited
financial statements show that the company made no profit or loss for the year (2010 - Sh nil).
NIC Bank Limited • Annual Report & Financial Statements 2011 • 79