STATEMENT ON NICO GROUP 2008 ANNUAL RESULTS

NICO Group’s results for the year ended 31st December, 2008 were officially released on 9th April 2009 at a press briefing held at its Head office in Chibisa House, Blantyre. (click here to download) This is following approval by the Board of Directors at its meeting held on 3rd April, 2009, for presentation to the Company’s shareholders on Friday, 12 June, 2009.

2008 has been another good year for the Group. Despite the challenges faced during the year, the group was able to register exceptional performance, strong growth and, a good result.  What is even more pleasing is that all the business lines were profitable.

Some of the challenges faced by the banking business included regulatory changes by the Central Bank regarding the handling of tobacco foreign exchange proceeds of the farming clientele. General insurance experienced an increased incidence of motor claims while, life insurance business experienced significant retrenchment payouts on some of the major schemes.

Gross revenues increased from MK11.2 billion to MK13.7billion representing a 22% growth.  Profit before tax and, transfer to policyholders’ future benefits increased from MK2.95 billion to MK4.3 billion. This has resulted in a profit before tax of MK2.6 billion from MK1.7 billion representing a growth of 52%.

Each one of the business lines made significant contribution to Group’s bottom line. NBS Bank made a profit before tax of MK1.124 billion from MK413 million representing a growth of 172%; NICO Life’s profitability was affected by lower than expected revaluation surplus and, posted a profit of MK694 million compared to MK770 million, previous year. General insurance business posted a profit of MK817 million from MK572 million, representing 43% growth.
 
This remarkable growth is as a result of several factors which among others include careful implementation of strategies through targeted and focussed marketing, in line with Strategic Growth Priorities. The strategic growth priorities are to retain existing business, to penetrate the market deeper with existing products and services, to create new products and, to diversify into new markets.

Furthermore, this strong growth has been achieved due to hard work, commitment, and dedication of members of staff. They are enthusiastic and passionate about their work which they do with a high level of professionalism.

The staff is what make the NICO Brand. A good, strong, reliable and reputable brand founded on strong core values. These values ensure high levels of integrity, quality products and services, good corporate governance and high professional ethics.

However, as NICO, the mission is not just to produce sustainable returns to shareholders. It is also about corporate social responsibility in all various forms. In line with its core values, this begins with the staff and, taken to all stakeholders in the communities in which NICO operates.

2008 has been a year of continuing growth of all the business portfolios and consolidation of the regional footprint. The NICO brand continues to enjoy more market acceptability. NICOs scale and geographical spread makes it a preferred business partner. Its potential gives the group the strength to leverage its corporate advantage to get competitive advantage.
 
The Group’s future prospects look good.

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