Kenya's NIC Bank has posted a 25% growth in pre-tax profit during the first three months of 2009, Daily Nation reports.

The bank increased its earnings from Sh297.2 million (US$3.8 million) recorded last year to Sh371.9 million ($4.7 million) for the period ending 31 March 2009.

NIC Bank could have posted a higher profit had it not been for the challenges some of its subsidiaries, especially brokerage firm NIC Capital Securities, faced during the period.

James Macharia, managing director of NIC told the Daily Nation that the first quarter of 2009 was not good for the stock market and had a negative impact on the stock brokerage business.

He attributed the bank's improved profits for the quarter to its cost management programme and higher earnings from foreign exchange trading.

Macharia added that he thinks Kenya's economy will pick up during the third quarter going into the fourth this year.