The NCBA Group has registered a Ksh. 7.4 billion profit before tax in its half-year results ending 30th June, 2021. This is a 90% increase compared to Ksh. 3.9 billion posted during a similar period last year.
The profit after tax tallied to Ksh. 4.7 billion representing 77% growth from Ksh. 2.6 billion in a similar period last year. This growth in profitability was attributed to increase in operating income by Ksh. 2.8 billion, driven by increased customer activity and a decline in loan impairment charges by Ksh. 1.7 billion.
Similarly, Asset base rose to Ksh. 542 billion, a 6% increase, while customer deposits closed at Ksh. 437 billion, 12% up year on year.
The Group disbursed Ksh. 272 billion in digital loans, 16% increase year on year in line with its digitization agenda and its commitment to supporting small businesses and individual customers during this period.
Commenting on the results, NCBA Group Managing Director, John Gachora said the strong financial results are outcomes of a steadily improving economic environment. “Our operating results in the first half of the year demonstrates that the actions we have taken to strengthen and enhance the Group’s performance are bearing fruit. Over the last year, we have taken the bold step to restructure 35% of our credit portfolio and we have seen a positive outcome of those actions as 82% of that restructured portfolio is now performing,” said Mr. Gachora.
He added that the group is on track to deliver on its strategic imperatives to enhance its branch network across the country and to digitally transform its operations and customer experiences.
“Since the beginning of the year, we have opened branches in Nairobi JKIA, Mombasa Mwembe Tayari, Karatina, Nyeri, Kakamega and Ruiru. We plan to open nine more branches by the end of this year to ensure that we bring our services closer to existing and potential customers,” he added.
During the first half of the year, NCBA signed several partnerships aimed at solidifying its strength in asset finance and growing its property finance business. On the asset finance front, the bank signed partnerships with Simba Corp, DT Dobie, Tata Africa Holdings, Isuzu East Africa to offer asset finance solutions to customers.
NCBA also signed partnerships with MySafe Vaults and KAM to offer safe deposit facilities to customers and to support the SME sector respectively. The Group has also collaborated with Strathmore University to support the Entrepreneurship Development Program that seeks to empower entrepreneurs with the necessary skill sets to become profitable entrepreneurs.