NCBA Group has posted a net profit of KES 12.8 billion in the nine months ended September 2022, a 96 per cent growth from KES 6.5 billion posted during a similar period in 2021.
The growth in profitability was attributed to an increase in operating income by KES 9.5 billion, driven by higher customer activity and a decline in loan impairment charges by KES 0.9 billion.
Total interest income rose by 13.3 per cent to KES 38.7 billion from KES 34.2 billion in Q3 2021.
In the period, the lender’s loan book rose by 61per cent to KES 266 billion from KES 238.2 billion.
Operating expenses rose by 19 per cent to KES 18.5 billion as the bank undertook expansion plans in the country and region.
Despite this, loan impairment charges declined to KES 8.3 billion from KES 9.2 billion.
The lower loan-loss provisioning costs were backed by a 20.9 per cent decline in gross non-performing loans (NPLs).
The lender’s asset base rose to KES 595 billion during the period, a 6 per cent growth year on year.