NCBA Group Plc more than doubled its net earnings for the financial year ended 31st December 2021 to KSh 10.2 Billion from KSh 4.6 Billion posted over a similar period in 2020, an increase of 121.7%.
The lender, established in 2019 following the merger of NIC Group Plc and Commercial Bank of Africa Limited (CBA), saw its Profit Before Tax (PBT) rise significantly from KSh 4.98 Billion in 2020 to KSh 15.0 Billion in 2021.
NCBA Group, which has subsidiaries in Rwanda, Tanzania, Uganda and Ivory Coast, is also in partnership with Safaricom to provide M-Shwari and MPesa Fuliza.
The lender’s digital loan disbursements went up to KSh 584 Billion in 2021 from KSh 434 Billion in 2020, while the lender’s Total Operating Income increased to KSh 49 Billion in 2021 from KSh 46 Billion in 2020. Total Operating Expenses declined to KSh 33.4 Billion in 2021 from KSh 40 Billion in 2020.
According to the audited financial results of NCBA Group for 2021, the lender’s balance sheet size grew to KSh 591 Billion in 2021 from KSh 528 Billion in 2020, while Customer Deposits were up to KSh 470 Billion from KSh 422 Billion in 2020.
Net Loans and Advances to Customers declined to KSh 244 Billion in 2021 from KSh 248.5 Billion in 2020.
Total Shareholders’ Funds grew to KSh 77.9 Billion in 2021 from KSh 72.3 Billion, the amount of cash that owners of the lender are to be paid, was the business to be liquidated.
Earnings per Share (EPS), which measures the lender’s profitability, improved to KSh 6.21 in 2021 from KSh 2.77 in 2020.
NCBA Total Interest Income, derived from Loans to Customers, earnings from Government Securities, and Deposits with other banking institutions, increased to KSh 46.5 Billion in 2021 from KSh 44.2 Billion in the prior year.
Total Non-Interest Income, derived from fees and commissions, forex trading and others, increased to KSh 22.1 Billion in 2021 from KSh 20.9 Billion in 2020.
The NCBA Board has resolved to recommend to the shareholders at the forthcoming Annual General Meeting, scheduled for 5th May 2022, the payment of a final dividend for the year of KSh 2.25 per share, which, together with the interim dividend of KSh 0.75 per share paid on 12th October 2021, brings the total dividend for the year 2021 to KShs 3.00 per share.
This is compared to payment to shareholders a first and final dividend of KSh 1.50 per share in 2020.
The 2021 dividend will be payable to the shareholders registered on the Company’s register at the close of business on 29th April 2022 and will be paid on or after 5th May 2022.