NCBA has reported a 77% increase in its half-year net profit to KSh4.7 billion compared to KSh2.6 billion posted in the same period in 2020, due to increased lending activity.
The bank’s total interest income, which is the primary source of revenue, climbed by 9% to KSh22.5 billion at the end of the half-year period from KSh20.7 billion in the same period last year. Total non-interest income grew to KSh10.7 billion in the first six months of 2021 from KSh10.08 billion in the first six months of 2020, a 6% jump.
NCBA cut its total operating expenses in the half-year period by 4% to KSh16.3 billion from KSh17 billion mainly by reducing its provisions for bad loans.
Kenya’s fourth-largest bank by assets expanded its customer deposits by 12% to KSh437.3 billion at the end of the first half of this year from KSh390.5 billion in the same period a year ago. Its loans and advances to customers dipped by 3.5% to KSh239.6 billion at the end of June 2021 from KSh248.3 billion at the end of June 2020.
The lender’s total assets rose by 6% to KSh542.59 billion from KSh514.03 billion posted in the first half of last year.
According to its financial report, NCBA’s gross non-performing loans increased to KSh45 billion at the end of the six months period from KSh38.7 billion a year ago.