NCBA Group PLC has posted a profit before tax (PBT) of 11.1 billion shillings in its quarter three results ending September 30th, 2021.
The profit before tax of 11.1 billion shillings is a three-fold increase compared to 3.8 billion shillings reported during a similar period last year.
The Group registered a nine-month profit after tax of 6.5 billion shillings representing 159 percent growth up from 2.5 billion reported in a similar period in 2020.
Growth in profitability was attributed to an increase in operating income to 36 billion shillings (up 3.2 billion shillings), driven by higher customer activity and a decline in loan impairment charges of 4.2 billion shillings year over year.
Asset base for the lender rose to 563 billion shillings, 8 percent up year on year, while customer deposits closed at 447 billion shillings, 11 percent. At the same time, the Group disbursed 423 billion shillings in digital loans, a 26 percent year-on-year increase.
The operating income increased by 10 percent to 36 billion while the cost to income ratio was at 43 percent from 46 percent in the same period last year. Operating profit before loan loss provisions was at 20 billion shillings 17 percent up.
During the period, loan impairment charges for the period stood at 9.2 billion shillings while the non-performing loans coverage ratio increased to 70 percent from 58 percent in the same period last year.
“Our operating results since the beginning of the year demonstrate that the actions we have taken to strengthen and enhance the Group’s performance are well on track. We continue to exercise a conservative approach towards credit risk management.
Looking at our results, you will note that our loan impairment charges, which were a drag on performance last year, have greatly reduced; 98 percent of the portfolio that we restructured during the COVID-19 period is now performing. We have also realized cost synergies from our merger; resulting in a significant improvement in our cost to income ratio to 43 percent, down from 46 percent in the same period last year.” said Mr. Gachora.