NCBA Reports Ksh 4.98 Bn In Profits, To Pay Ksh 1.50 In Dividends Per Share

NCBA Group PLC has posted a profit before tax of 4.98 billion shillings for the financial year ending December 31, 2020.

The Group maintained strong operational performance, reporting an operating income growth of 38 percent to 46.4 billion shillings. Operating profit (before provisions and exceptional items) increased by 37 percent to 26.8 billion shillings.

“In a year of unprecedented challenges for our business, the banking sector, and the economy at large, I am extremely proud of the results that the Group delivered. Despite the massive economic impact of COVID-19, our operating income increased 38 percent to close the year at 46.4 billion shillings.

To cushion our business and our customers against the impact of COVID-19, we took unprecedented measures throughout the year. We implemented a robust cost containment plan that reduced operating expenses and contributed to the operating profit increase,” said John Gachora, NCBA Group Managing Director.

Total assets grew by 33 billion shillings to close at 528 billion shillings and customer deposits up by 43 billion shillings to close at 421.5 billion shillings.

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“We remain very well capitalized with core capital at 64.8 billion shillings and have a robust liquidity of 55 percent, allowing us to continue effectively serving our clients through these challenging times,” John Gachora added.

The net operating income for the lender stood at 46.4 billion shillings, an increase of 38 percent. Non-funded income remained a key revenue driver contributing 45 percent of operating income. Net interest income closed at 25.5 billion shillings.

The net loan book stood at KES 248.5 billion. Non-Performing Loans stood at 40.1 billion shillings, an increase of 19 percent. Non-performing loan provision coverage was at 61 percent up from 56 percent.

For the year 2020, the Board has resolved to recommend to the shareholders for their approval at the Annual General Meeting scheduled to be held on 9th June 2021, the payment of a final dividend for the year of 1.50 shillings per share.

The dividend will be payable to the shareholders registered on the Company’s register at the close of business on 20th April 2021 (closing date for determination of entitlement to dividend).