Banking outfit NCBA Group has announced that it has posted a 21.4 per cent growth in profit after tax for the first three months of 2022 to Ksh. 3.4 billion from Ksh. 2.8 billion in the previous period.
The jump in profit by the bank has been attributed to a 17.3% growth in non-interest funded income to Ksh. 6.1 billion from Ksh.5.2 billion in 2021. NCBA’s net interest income also grew by 7.6% to stand at Ksh. 7.1 billion from Ksh. 6.6 billion.
The bank’s costs however grew by 3.8% with total operating expenses growing to Ksh.8.1 billion from Ksh.7.8 billion in the previous period. It cut its loan loss provisioning costs with the loan defaults cover falling to Ksh.2.5 billion from Ksh. 2.6 billion. The fall in provisions from December 2021 is despite a 13.9 per cent rise in gross non-performing loans (NPLs) to Ksh. 45.1 billion from Ksh. 39.6 billion. Loans and advances to customers grew to Ksh. 243.9 billion from Ksh. 243.1 billion.
In March, NCBA reported a Ksh. 10.2 Billion net profit for the financial year ended 31st December 2021. This was an increase of 121.7% from the Ksh. KSh 4.6 Billion which was posted in the year 2020. The rise in profitability was on the back of a 5% increase in the total operating income to Ksh. 49 Billion up from Ksh. 46 Billion in 2020.
NCBA Group is scheduled to hold its 62nd Annual General Meeting on May 5th 2022, where shareholders are expected to confirm the interim dividend of Ksh. 0.75 per ordinary share paid on 12th October 2021 and consider approving a final dividend of Ksh. 2.25 per ordinary share. In 2020, the Group paid a total of dividend of Ksh. 1.50 per ordinary share.
NCBA Group operates a network of more than 100 branches in five countries including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Serving over 50 million customers, the NCBA Group is the largest banking group in Africa by customer numbers. NCBA Bank Kenya PLC is Kenya’s third largest bank by assets.