NCBA Group records Sh5.3 billion profit after tax in Q1 of 2024
The bank's operating income went up by 2.8 per cent to Sh16 billion.
NCBA Group's profit after tax increased to Sh5.3 billion in the three months up to March this year, compared to Sh5.1 billion over the same period last year.
According to the bank's latest financial statement released on Wednesday, operating income went up by 2.8 per cent to Sh16 billion while the amount set aside for credit losses dropped to Sh1.4 billion, which is nearly a 40 per cent decrease.
"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," Group Managing Director of NCBA John Gachora said.
Customer deposits surged to Sh548 billion, representing a significant 9.7 per cent increase year on year.
Total Assets witnessed substantial growth, reaching Sh695 billion, up by 10.5 per cent compared to 2023.
Digital Loans disbursed amounted to Sh232 billion, indicating a 3.9 per cent increase year on year while operating income stood at Sh16 billion, reflecting a 2.8 per cent increase year on year.
Operating expenses
Operating expenses, however, experienced a 12.4 per cent increase year on year, totalling Sh8.1 billion. Provision for credit losses decreased by 30.9 per cent year on year, amounting to Sh1.4 billion. Profit before tax reached Sh6.5 billion, marking a 2.2 per cent increase compared to 2023.
Gachora emphasised the significant role played by regional subsidiaries in Uganda, Tanzania, and Rwanda, which collectively contributed Sh705 million, representing 11 per cent of group profitability.
Additionally, non-banking subsidiaries such as the Investment Bank, Bancassurance, and Leasing reported positive operating profit, contributing 4.9 per cent to the Group's profitability.
The group was recognised as Kenya's second-fastest-growing brand by Brand Finance, reflecting a 44 per cent increase in 2024.
"We have maintained asset finance market share leadership at 35 per cent and our growing deposit base indicates the ability to attract and serve more corporate and retail customers," added Gachora, highlighting the group's market position and expansion efforts.
NCBA's focus on supporting small businesses through initiatives such as the Enterprise Development Programme in partnership with Strathmore Business School has also contributed to SME growth and empowerment.
Digital innovation and financial inclusion remain pivotal aspects of NCBA's strategy, with over 60 million customers benefiting from digital loan disbursements totalling Sh232 billion.
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