NCBA Bank has recorded an increase in net profit from KSh 5 billion to KSh 7.8 billion at the close of the financial year ended 31st December 2019.
The lender’s profitability was slowed down as a result of a cost of KSh 4.1 billion arising from the transfer of net assets of NIC Bank to CBA Bank, creating NCBA Group.
In its report, NCBA Group discloses that integration of all the lender’s subsidiaries in Kenya is complete. This process is still ongoing in Uganda, Tanzania and Rwanda where it has a presence.
The balance sheet size of NCBA Group doubled after the merger process, from KSh 245.1 billion to 494.8 billion as NIC and CBA Bank consolidated their assets.
These NCBA financial results for the year ending 31st December 2019 is a combination of 9 months’ accounts of CBA Bank and three months’financial performance of NIC Bank.
The loan book size increased from KSh 121.5 billion to KSh 249.4 billion customer deposits trebled to hit KSh 378.2 billion from KSh 196.5. NCBA Group has thus increased its loan portfolio and size of deposits, placing the lender among Kenya’stop banks in terms of strength, expertise and regional presence.
Total Shareholders funds, equity that belongs to owners of NCBA doubled from KSh 30.6 billion to KSh 67.3 billion after the merger process was completed. This is what shareholders could receive if the business was to liquidate.
Total interest income increased from KSh 19.4 billion to KSh 25.5 billion. This is what the lender earned from lending to customers lending, investing in Government paper and placing its deposits with other financial institutions.
Directors have proposed a dividend payment of KSh 150 per share, payable at the close of business on 23rd April, 2020. This lender’s forthcoming annual general meeting(AGM) has yet to be scheduled.
ALSO READ:
NCBA Group Unveils Plan to Scale-up After Successful Merger
