NCBA Bank has posted strong financial performance in the first quarter of 2021 after improved activity across all its segments. The bank’s profit after tax jumped to KSh2.84 billion, a 74% increase from the KSh1.6 billion posted in March 2020.
In the first quarter of this year, NCBA attracted new customers and recorded an 11% rise in customer deposits to KSh432.2 billion from KSh389.4 billion a year ago. The lender’s gross loans grew conservatively at 2% to KSh283 billion from KSh277.5 billion in March last year. Digital loans increased sharply to KSh134 billion from KSh109.8 billion in the same period in 2020.
NCBA Group CEO John Gachora said, “We are immensely proud of our strong financial results during the first quarter, NCBA Group has demonstrated the ability to tightly balance strong credit discipline with its commitment to support its customers during this period.”
The tier one bank reported a 20% growth in net interest income boosted by increased interest income from treasuries. In addition, NCBA cleared its KSh7 billion medium term note in the third quarter of 2020, thereby reducing its interest expenses.
The lender’s total assets accelerated to KSh542 billion at the end of the first quarter of 2021, a 6% increase from KSh511 billion in the same period in 2020.
NCBA set aside KSh2.6 billion in the three months through March 2021, to cover potential loan losses as required by law.