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NCBA Group PLC Reports Profit After Tax Growth Of 14.4% To Ksh 14.6 Billion

BY Soko Directory Team · November 23, 2023 11:11 am

NCBA Group PLC has posted a profit after tax of KES 14.6 billion in its Q3 results ending September 30^th 2023, which is a 14.4 per cent increase compared to KES 12.8 billion reported during a similar period last year.

The growth trajectory for the Group remained solid compared to 2022 driven by positive operating income and a decline in loan impairment charges by 27 percent. The Group’s operating expenses closed at 19 percent up year on year on the back of inflationary pressures and continued investment in the current five-year strategy.

While releasing the quarter three financial results, NCBA Group Managing Director, John Gachora commented, “These robust financial results are attributable to laser focus on our key strategic priorities to support our customers and grow shareholder returns.”

“Our Q3 performance continued to be buoyed by the significant contributions of the regional subsidiaries (Tanzania, Rwanda, and Uganda) which collectively delivered a profit before tax of KES 2.3 billion (a notable improvement from the loss of KES 312 million posted in Q3 2022)” said Gachora. These regional outcomes were a result of the Group’s turnaround strategy in Tanzania and accelerated growth in Uganda and Rwanda.

In line with the commitment to being accessible to customers, NCBA`s branch expansion activities resulted in additional locations in Muranga, Kenol, Chwele, Migori, Kahawa Sukari, Eastleigh, Wote, and Ruaka, bringing the Group`s branch network to 107.

NCBA remained a market leader in asset finance with a 34% market share driven by an improved focus on corporate customers, innovative solutions, and stronger dealer partnerships. As part of this focus, NCBA was the title sponsor of the NCBA-KMI MotorShow, which attracted close to 10,000 potential vehicle owners.

NCBA continued to embrace digital transformation for its over 60 million customers across Africa with digital lending reaching KES 695 billion for the period. This was achieved through enhanced online plus mobile platforms and streamlined digital processes.

NCBA launched its Sustainability platform “Change the Story” and unveiled a set of 15 Bold Sustainability Commitments. This was a critical milestone as the Group strives to catalyze action towards a Greener and More Sustainable Future.

As the quarter closed, NCBA announced its intention to acquire 100% of AIG Kenya Insurance Company Limited. The announcement came after authorization from the Group’s Board of Directors commencing discussions with AIG Group to acquire its entire shareholding in AIG Kenya Insurance Company Limited (subject to regulatory approvals).

Speaking on the rationale for the transaction, NCBA Group Managing Director John Gachora said, “Insurance is increasingly becoming a basic financial need for the type of customer that NCBA serves. We believe that by bringing together NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities we will accelerate towards our ambition to become a universal bank that addresses a full set of our customers’ financial needs”.

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On prospects, Gachora commented, “Overall, we remain optimistic on full-year performance prospects. The risks to this outlook of course are many but largely stem from an even more uncertain external environment notably, the expectation that interest rates will remain “higher for longer” to bring down inflation to within target.

Even then, given the fact that concerns around Kenya’s debt sustainability have been a significant drain on growth prospects, the recently announced IMF staff-level agreement on the sixth review of the extended credit facility will see the country receive an immediate release of USD 638 Million should undoubtedly provide further impetus to output.

We will continue with our unwavering commitment to our customers, employees, and the communities we serve and are confident in our ability to continue delivering sustainable growth and creating value for all our stakeholders.”

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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