NCBA Group PLC has posted a profit after tax of 5.3 billion shillings in its first quarter of 2024 financial results which is a 5 percent increase compared to 5.1 billion shillings reported during a similar period in 2023.
Key Highlights
Customer deposits closed at KES 548 billion, 9.7 percent up year on year.
Total Assets grew to KES 695 billion, 10.5 percent up year on year.
Digital Loans disbursed KES 232 billion, a 3.9a percent increase year on year.
Operating income of KES 16.0 billion, 2.8 percent up year on year.
Operating expenses of KES 8.1 billion,12.4 percent up year on year
Provision for credit losses was KES 1.4 billion, 30.9 percent down year on year.
Profit before tax of KES 6.5 billion, 2.2 percent up year on year.
Profit after tax of KES 5.3 billion, 4.7 percent up year on year.
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NCBA has achieved continued growth and success driven by a positive operating income of 16 billion and a decline in loan impairment charges by 30.9 percent year on year. On the back of cost efficiency prioritization, operating expenses resulted in a 12 percent year-on-year increase.
“We are pleased to report strong financial results for the first quarter of 2024,” said John Gachora, Group Managing Director of NCBA. “Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with a strong contribution from our digital business and stable performance from our regional banking subsidiaries.”
The regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined 705 million shillings, representing 11 percent of group profitability; while the non-banking subsidiaries including the Investment Bank, Bancassurance, and Leasing all reported positive operating profit and contributed 4.9 percent of the Group profitability.
NCBA has consistently invested in its priority of becoming a distinguished brand known for customer experience. According to leading brand valuation consultancy Brand Finance, NCBA has been recognized as Kenya’s second-fastest-growing brand, up 44 percent in 2024 to rank at position 6 of the Top 25 Most Value Brands. This is a demonstration of relentless efforts in brand building that aligns well with customer needs.
“We have maintained asset finance market share leadership at 35 percent and our growing deposit base indicates the ability to attract and serve more corporate and retail customers. Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network,” said Gachora.
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Aligned with the Government’s commitment to support small businesses accounting for 33.8% of the National output, NCBA`s Enterprise Development Program partnership with Strathmore Business School was a major boost to SME growth. Business owners were trained in a 16-week course tailored to equip them with the tools and skills needed to identify and seize opportunities, foster innovation, and unlock their business potential.
NCBA continued to pioneer financial inclusion across Africa for its over 60 million customers recording digital loan disbursements of KES 232 billion. Access to credit through digital platforms including LOOP, Mshwari, and Fuliza partner platforms with KCB and Safaricom empowered customers to meet their daily financial needs and cushion them against economic headwinds.
Under the Change The Story platform, NCBA’s journey to realize its 15 Sustainability Commitments is on track. Through notable partnerships including Proparco, Dr. Choksey Albinism Foundation, M-PESA Foundation, Edumed Trust, SOS Children’s Villages Kenya, Daraja Kenya Initiative, Palmhouse Foundation, KENSAP,WEDCO,Junior Achievement, Wangari Maathai Foundation, Kenya Forest Service, Karura Forest, Junior Golf Foundation and Kenya Golf Union, NCBA impacted:
Over 100 Students who were beneficiaries of education scholarships
10,000 golfers by investing KES 60 million in inclusive regional tournaments
Tree growing mobilization through funding nurseries for 400,000 seedlings
Green financing and women economic empowerment via a USD50 million facility
Installation of EV Charging station in Rwanda to enable electric vehicle adoption
Looking ahead, Gachora added that “The challenging business environment will benefit from the positive outcomes outlined in ongoing public and private sector economic policy interventions. We remain committed to deliver against the Group`s strategic cycle now in its final year, which will drive sustainable growth and create value for shareholders,” said Mr. Gachora.