NICO Group’s financial results posts K12 billion comprehensive income

NICO Group has posted K12.738 billion as total comprehensive income for the year ended 31 December, 2018, up from K12.195 in 2017 representing a 4.5 percent increase.

Vizenge Kumwenda, NICO Group Managing Director
Part of the stakeholders that attended

This was announced by Group Chief Finance Officer Chifundo Chiundira at a stakeholders meeting held at Ryalls Hotel in Blantyre where he also indicated that the Group’s profit before tax was at K16.075 billion from K16.480 billion, down by 2.5 percent.

Profit after tax is K12.773 billion from K11.123 billion with other comprehensive income net of tax is K35 million.

Net insurancepremiums is at K65.014 billion from K61.703 billion up by 5.4 percent. Investment income stands at K44.995 billion from K52.152 billion and down by 13.7 percent while income from banking is at K23.326 billion from K17.303, up by 34.8 percent.

Fee income stands at K3.863 from K2.970, up by 30.1 percent, total revenue at K137.197 from K134.127 up by 2.3 percent while operating expenses were at K122.149 from K118,967.

NICO Group’s Managing Director Vizenge Kumwenda said this performance is a clear indicator that it is prudent to invest in this financial institution that also has investment footprints in Zambia, Mozambique, Tanzania and Uganda

He also said NICO dividend, which has been declared at K1.7 per share, has no tax deduction.

“Other reasons why shareholders should maintain investing in NICO as well as attract potential stakeholders is that our subsidiaries have significant market share in their respective industries.

“NICO has diversified portfolio of investments in the financial services sector and its subsidiaries leverage on synergy in the group.

“We have investments in various African countries, we consistently pay dividends which has no tax deduction.

The Group, which has a rich history spanning over 45 years of contributing to national development in Malawi, was incorporated as a composite insurer in 1970 starting off as the National Insurance Company Limited and commenced trading in January 1971.

NICO was the first company to list on the Malawi Stock Exchange on 11 November 1996 and after restructuring in 2002 the name was changed to NICO Holdings Limited in 2003.

“The name was changed again to NICO Holdings Public Limited Company or NICO Holdings Plc to comply with the new Companies Act 2013 in June 2017,” Kumwenda said.

The Group has played a pivotal role in the development of the capital market and commerce of the country and was further underpinned by the company’s bold steps in becoming Malawi’s first multinational company, with business interests outside Malawi.

NICO’s core business focus is in financial services, namely; insurance, ASSET management, pensions administration and banking and is the biggest insurance provider in Malawi, through its subsidiaries: NICO Life and NICO General.

During the launch of a new marketing visibility campaign last month that is aimed at reclaiming its brand’s position, NICO Life Chief Executive Officer, Eric Chapola had said the Group continues to contribute materially to economic growth of the country by enabling a more efficient mix of economic activities than would generally be undertaken in the absence of risk management instruments provided by insurance.

“This contribution is further magnified by NICO’s investment in the banking sector through NBS Bank, which has made a significant contribution to the national drive for financial inclusion.

“NICO’s success in the financial services industry has enabled investments in other areas that are critical to development, such as the hospitality, health, and infrastructure development industries.

“As such, NICO continues to create business and employment opportunities outside of the financial services sector.

“This focus on identifying opportunities that will positively impact growth of the Malawian economy and improve the quality of life for Malawians from all walks of life, will continue to underpin NICO’s growth and investment strategies in the future.”

NICO was also broke the 10-year drought on the Malawi Stock Exchange by listing ICON Properties Plc in January 209, a NICO subsidiary which aims at transforming the real estate landscape to the next level so that they continue to being the market leader.

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