For a company that took off in 1959 as a non-bank financial institution, NIC has thrived on sustained innovation.

Popularly known among the youth as 'Move'- after one of its products- NIC was one of the first banks to offer Internet and SMS banking in the country.

In an era where banks have been positioning their branches in every corner of the country, NIC has undertaken a cautious network spread.

Having chosen to serve a niche market, the bank has only 10 branches. But judging from the activity in the bank's corridors, there are no regrets.

In November, last year, the bank floated a Sh1 billion rights issue to fund its expansion plans and capacity for new businesses. This was oversubscribed by 49 per cent and the success has enabled the bank to enter into brokerage through NIC Capital Securities.

The option to acquire the then struggling Solid Investment Securities was reached after NIC Bank lost a Sh180m bid to buy a seat on the Nairobi Stock Exchange (NSE) , which was vacated by the collapsed Francis Thuo Stockbrokers.

The idea was to offer full financial services solutions to the bank's customers instead of leaving them to go to the NSE through other brokers. "It was a logical and value adding initiative as our customers have become increasingly active in investing in the Nairobi Stock Exchange," says Mr James Macharia, the NIC managing director.

Though it has not been formally launched yet, Solid Investment Securities has been renamed NIC Capital Securities. The company booked significant business during the recently concluded Safaricom IPO.

A locally owned institution and one of the six Nairobi Stock Exchange listed banks, NIC was first incorporated in Kenya in 1959 as a joint venture to provide hire purchase and instalment credit facilities in Kenya.

As the over 21,000 shareholders of the bank walk into the company's annual general meeting next week, they have every reason to smile.

Even after the country was hard hit by the post- election crisis, it continues its innovation streak; managing to sustain an impressive growth curve.

Its first quarter results shows a 31 per cent growth in profits after tax on the back of growth in customer deposits and loan and advances.

Customer deposits grew to Sh28.98 billion in March, this year, from Sh22.09 billion. NIC Bank's financial year closed with a strong capital base of Sh 4.7 billion by way of Shareholders' funds. It is one of the highest capitalised banks in the country.

Macharia attributed the results to, among other things, success in its key treasury, corporate banking, asset finance and business banking segments.

"These business segments have ensured innovation and quick turnaround times in the delivery of services to the respective customers, thus considerably gaining market share from our competitors," said Mr Macharia.

There has been speculation that NIC might be on its way to merge with the Insurance Company of East Africa (ICEA). Macharia, however, said: "This is a matter for the shareholders of the two companies, and we have no comment to make."

Source: Dyer and Blair