NCBA Group PLC has announced that it has registered a half year profit after tax of Ksh. 7.8 billion for the period ending June 30 2022. This is a 67% growth up compared to the Ksh. 4.7 billion the company registered in the half year of 2021.
Some of the key highlights from the financial period are below;
· Assets grew to Ksh. 604 billion, 11% up year on year
· Customer deposits closed at Ksh. 468 billion, 7% up year on year
· NCBA Group disbursed Ksh. 339 billion in digital loans, 25% increase year on year
· Operating income of Ksh. 28.9 billion, 20 % up year on year
· Operating profit before loan loss provisions of Ksh. 17.5 billion, 27% up year on year
· Provision for credit losses was Ksh. 5.6 billion, 6% down year on year
· NPL coverage ratio declined slightly to 62%, from 68% in the same period last year
· Profit before tax of Ksh. 11.2 billion, 51% up year on year
· Profit after tax of Ksh. 7.8 billion, 67% up year on year
· Interim dividend of Ksh. 2 per ordinary share held
Commenting on the results, John Gachora, the Group Managing Director of NCBA Group, said the results reflect the outcomes of the strategic actions that the Group has taken to support customers navigate the current macro-economic environment and a confirmation that the merger is bearing the fruits of its promise.
“Looking at our results, you will note that we have been deliberate in our effort to drive a diversified business serving a wide spectrum of customers. Our commitment to supporting customers by making it easier for them to access financial solutions underscores our improved Group performance. We have provided an enabling environment for businesses to continue to thrive by increasing our product portfolio and tailoring solutions to suit every customer’s needs especially during this period which experienced challenges from the Russia/Ukraine war and risks emanating from the political calendar. Through our digital banking partnerships (M-Shwari, Fuliza, Mpawa, Mokash and Momokash), we continue to provide much needed financial relief to many families and small businesses,” noted Mr. Gachora.
NCBA Group launched a branch expansion agenda last year which has seen it open 18 branches across the region in the last 18 months. This year, the Group has opened four branches in Busia, Utawala, Kenol and River Road and plans to open seven more branches by the end of the year.
“Opening of these branches creates job opportunities across the country and helps us take our services closer to the people. We believe that this wider distribution network allows us to contribute directly to the country’s economic growth agenda. The retail expansion is supported by continuous review of our products and services to make them more attractive and problem-solving to the communities we serve” said Mr. Gachora.
The company has rolled out 15 secs pre-conditional approval on asset finance through which customers are able to get indicative approvals within 15 seconds of completing an online application. The program has seen a strong uptake and already over Ksh. 2.5 billion has been approved through the channel. It also launched a 11.9% promotional mortgage campaign to customers that has recorded customer uptake valued at Ksh. 3 billion. The mortgage campaign will run until the end of October. NCBA also became the first bank to finance electric vehicles as part of its green strategy by injecting Ksh. 2 billion in asset finance.