NCBA Group’s net earnings in the three months to March 2020 reached KSh 1.6 billion from KSh1.3 billion posted in the first three months of 2019.
The portfolio of non-performing loans rose significantly from KSh 12.1 Billion in March 2019 to KSh 38.8 Billion at the end of the first quarter of 2020.
The Group’s balance sheet size nearly doubled to KSh 509. 6 Billion from KSh 204.2 Billion in 2019 while Customer Deposits rose to KSh 390.5 Billion from KSh 204.2 Billion at the close of March 2019.
According to NCBA Group’s unaudited financial results for the period ended March 31st, 2020, net loans and advances to customers doubled from KSh 122.2 Billion to KSh 245.9 Billion at the end of March 2020.
Total Shareholders’ Funds, cash that is to be paid to the lender’s owners, were the firm to be liquidated, increased from KSh 30.3 Billion to KSh 68.8 Billion during the period under consideration.
Earnings from loans and investments in government papers and deposits held by other banking institutions rose significantly from KSh 4.8 Billion to KSh 10.2 Billion at the end of March this year.
Fees and Commissions earned from loans and advances to customers also doubled from KSh 1.6 Billion to KSh 3.2 Billion.
With banks making renegotiating loan repayments schedules with customers, owing to disruptive effects of COVID-19 on business and households, NCBA’s provisions for loan loss climbed astronomically from KSh 584.9 Million to KSh 3.8 Billion at the end of March 31st, 2020.
NCBA Directors disclose that the merger between NIC Group PLC (NIC) and Commercial Bank of Africa Limited (CBA) is complete and costed an estimated KSh 195.6 Million. This figure is listed under the Group’s Statement of Comprehensive Income.
The planned integration in the other jurisdictions where NCBA Group has a presence is ongoing and is expected to be completed by the close of Q3, 2020.
While it is still too early to assess the extent of the impact of the COVID-19 pandemic on the banking sector, financials of lenders who have already published their results have begun to be felt in this first quarter of the year.
NCBA Group has already made an initial KSh 100 Million to assist those most affected by COVID-19 pandemic.
On April 20th, 2020, the lender’s board announced that it was changing its earlier recommendation to pay a cash dividend and instead recommend to the shareholders a bonus share issue.
The decision was made considering the need to preserve capital for the benefit of NCBA customers and shareholders, especially in light of the challenge posed by the COVID-19 pandemic.
The proposed Bonus issue is one share for every ten shares held. The bonus shares will be issued to the shareholders registered on the Company’s register at the close of business on May 12th, 2020.