NCBA Group has posted a net profit of KSh 15.1 billion in the 9 months to September – a 3% increase from KSh 14.6 billion reported in the same period in 2023.
- Growth in revenue was mild, rising by 0.6% to KSh 46.9 billion, owing to a 5.2% increase in the non-interest income to KSh 21.8 billion.
- The growth was however muted by a 3.1% decline in the net interest income driven by a faster 53.7% surge in interest expenses.
- Operating expenses increased by 1.6% to KSh 28.6 billion driven by higher staff costs, rental charges and other operating expenses.
“The underlying trends of our P&L remained solid against an exceedingly volatile operating environment which has impacted our cost of funding and put pressure on our Net Interest Income,” NCBA Group Managing Director, John Gachora said in a statement.
Gross non-performing loans contracted 4.3% to KSh 41.1 billion, prompting the management to reduce the allowances for credit losses by 32.8% to KSh 4.1 billion.
“Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges and improved asset quality,” he added.
Customer deposits grew by 6.4% to KSh 548.1 billion with the loan book contracting by 1.7% to KSh 303.5 billion in the period. However, the uptake on digital loans was robust, expanding by 8% to KSh 751 billion in the period.
The Kenyan Bank business remained a key driver contributing 83 per cent of the Group’s KSh 18.4 billion profit before tax.
NCBA’s banking subsidiaries in Uganda, Tanzania and Rwanda collectively contributed 13% to the profit before tax, raising a combined KSh 2.4 billion.
The non-banking subsidiaries including the Investment Bank, Bancassurance, Leasing and NCBA Insurance (formerly AIG Kenya) contributed 4% to the Group profit before tax.
“Going forward, with most of the key economic sectors and sub-sectors already back to their long-term-average growth rates, the role of the Government and Markets will be crucial to sustaining growth as well as enabling households and business enterprises to build buffers that will deal with future shocks.”
