10 Reasons Why NCBA Is The Bank To Watch In 2023
KEY POINTS
As of Q3 of 2022, NCBA Bank Kenya emerged as the fastest-growing bank in Kenya both in profitability and assets. The bank single-handedly contributed 98 percent of NCBA Group’s profits for the Q3 of 2022. The bank’s profits ballooned 96 percent in Q3 to 12.8 billion shillings.
KEY TAKEAWAYS
NCBA Bank emerged as the top stock at the NSE. The Group’s share jumped 57.94 percent in 2022, making it the top performer at the Nairobi bourse that shed 650.1 billion shillings last year.
For the first 9 months to September 2022, NCBA was the leading lender in digital banking loan disbursement, driving total loan disbursement to 521 billion shillings.
Kenya currently has at least 28 domestic banks, and 14 foreign commercial banks with branches, agencies, and various outlets. In total, there are at least 42 banks in Kenya. The numbers are likely to reduce or increase based on acquisitions.
With so many banks in Kenya, at one point, the country was said to be overbanked with each lender striving to have a share of customers whose needs and demands keep on shifting and changing with each passing day.
The current Kenyan bank customer is continuously looking for a service provider that will:
- Provide personalized products and services
- Listens to them in through customer service
- Ready to grow their ideas from nothing to something
As such, Kenyan banks have been working around the clock to ensure that they come up with products and services that not only retain their current customers, but also attract new ones, either from competitors or those banking for the first time.
As the 2023 year kicks off, NCBA Bank Kenya is one of the banks to watch this year based on the following 10 reasons:
Fastest growing bank in Kenya
As of Q3 of 2022, NCBA Bank Kenya emerged as the fastest-growing bank in Kenya both in profitability and assets. The bank single-handedly contributed 98 percent of NCBA Group’s profits for the Q3 of 2022. The bank’s profits ballooned 96 percent in Q3 to 12.8 billion shillings.
Given the steady growth of the lender, with more Kenyans gaining trust, analysts within the sector say it is the bank to watch this year. With the return of the mobile to bank charges, analysts have foreseen, profits for various banks, not just NCBA increasing during the Q1 of 2022.
The best stock at the Nairobi Securities Exchange
The Nairobi Securities Exchange (NSE) has experienced a myriad of challenges including the Covid-19 pandemic that ravaged various economies. The bourse saw foreign investors take off or opt to invest in other “safer havens” such as Gold.
Despite all the challenges, coupled with the invasion of Ukraine by Russia, NCBA Bank emerged as the top stock at the NSE. The Group’s share jumped 57.94 percent in 2022, making it the top performer at the Nairobi bourse that shed 650.1 billion shillings last year.
Leader in digital banking
Digital banking has gained momentum in Kenya. With platforms such as M-Pesa, Kenya has been placed on the global map in terms of financial inclusion. Dominating the space for over 10 years, and beating more than 20 other giants.
NCBA Bank is among the few that have discovered the power of digital banking and lending. For the first 9 months to September 2022, the lender was the leading lender in digital banking loan disbursement, driving total loan disbursement to 521 billion shillings.