NCBA’s full year net profit for the year 2020 nosedived by 42% to KSh4.6 billion as the bank ramped up its provisions for loan losses. The tier-one lender put aside KSh20.4 billion to cover expected loan losses caused by the covid19 pandemic, compared to KSh6.25 billion set aside in 2019.
The bank’s revenue from net interest income shot up by 91% to KSh25.5 billion at the end of 2020, from KSh13.3 billion at the end of 2019. Non-interest income rose by 3% to KSh20.9 billion from KSh20.3 billion a year ago.
NCBA, which targets small and medium-sized enterprises, said that it disbursed over KSh432 billion in digital loans thereby helping small businesses to cope with the covid19 crisis. The bank also gave loan moratoriums and restructured loans for borrowers affected by the pandemic. “The Group granted loan moratoriums and restructured loans amounting to over KSh 78 billion to corporate and retail customers as at the end of December 2020,” the bank said
Customer deposits rose to KSh421.5 billion in 2020 from KSh378.2 billion in 2019 as the lender digitized its operations. “NCBA upgraded its M-Shwari digital platform, drastically improving transaction capacity for its 35 million Kenyan customers. The Group plans to roll out the technology in Uganda, Rwanda, Tanzania and Ivory Coast in 2021,” the lender said.
Loans and advances to customers decreased slightly to KSh248.5 billion compared to KSh249.4 billion a year earlier. NCBA’s bad loans grew to KSh40 billion at the end of 2020, from KSh33.7 billion in 2019.
During the results announcement, NCBA revealed plans to scale its retail banking business and to provide exceptional customer experience to over 35 million customers spread throughout the East African region.
NCBA board of directors recommend a final dividend of KSh1.50 per share.