NCBA Group has posted a 5 per cent increase in half year profit to KSh9.8 billion compared to the same period in 2023.
- •Operating income grew mildly by 1.1 per cent to KSh31.4 billion with operating expenses growing at a faster pace to KSh16.5 billion.
- •Customer deposits increased by 2.4 per cent to KSh528.9 billion. Similarly, the Group’s loan book grew 5.9 per cent to KSh309.7 billion.
- •The lender’s total assets grew to KSh689 billion, a 4.3 per cent increase year on year. Loan loss provisions were reduced 38.3 per cent to KSh2.7 billion, following the 4 per cent decrease in gross non-performing loans which stood at KSh40.9 billion.
The Group continued to accelerate and promote financial inclusion across the region by disbursing KSh478 billion worth of Digital Loans, a 4 per cent year-on-year increase.
“These outcomes are flat year on year largely driven by a tight interest rate environment which has elevated our cost of funds and pressured our profit margins. Despite these challenges, we remain committed to strategically managing our balance sheet and optimizing our financial performance to sustain our growth trajectory,” John Gachora, Group Managing Director of NCBA said.
The Kenyan subsidiary contributed the most to revenue – KSh25 billion – about 81 per cent. “In totality, our regional subsidiaries have contributed KSh1.5 billion in PAT, which is about 15% of the Group’s profit,” David Abwoga, NCBA Group Finance Director said.
NCBA declared a KSh2.25 interim dividend – the highest they have paid as an organization – payable on or immediately after 25th September 2024 to shareholders present in the register by 11th September 2024.
The 100 per cent acquisition of AIG Kenya further strengthened NCBA’s position in the financial services industry by tapping into a sizable KSh309 billion insurance industry.
NCBA, which is listed at the Nairobi Securities Exchange, opened today’s trading session at KSh42.90, a year to date gain of 10.1 per cent.
Notably, NCBA Group shareholders’ fund has surpassed the KSh100 billion mark, mirroring a stronger financial position and increased value to shareholders.
NCBA, which operates in Kenya, Uganda, Rwanda, Ivory Coast and Tanzania, was looking to expand their digital banking segment to Ghana. However, the group has reverted to 2025 following a change of regulations in the West African country pushing NCBA to reapply.
“The economic outlook for the latter half of the year presents a nuanced blend of optimism and caution. In Kenya, we have observed positive trends with inflation easing to 4.6% and the local currency stabilizing against major currencies.
“We are encouraged by the Government’s commitment to support sustainable growth, to maintain fiscal discipline, and to continue fostering a favorable financial environment. These efforts will be key in driving economic progress and supporting the ongoing success of the private sector,” the Group CEO remarked while speaking about the future of the business.
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