NCBA Group PLC has today announced that it has posted a profit after tax of Ksh. 9.8 billion in its first half of 2024 financial results. This is a 5% increase as compared to the Ksh. 9.4 billion reported during a similar period in 2023.
Some of the highlights of the financial results are:
- Customer deposits closed at Ksh. 529 billion, 2.4 per cent up year on year.
- Total Assets grew to Ksh. 689 billion, 4.3 per cent up year on year.
- Digital Loans disbursed were Ksh. 478 billion, 4.0 per cent increase year on year.
- Operating income of Ksh. 31.4 billion,1.1 per cent up year on year.
- Operating expenses of Ksh. 16.5 billion,15.5 per cent up year on year.
- Provision for credit losses was KES 2.7 billion, 38.3 per cent down year on year.
- Profit before tax of KES 12.2 billion, flat growth year on year.
“We are pleased to announce another set of strong financial results for the first half of 2024,” said John Gachora, Group Managing Director of NCBA. “Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience. Our banking business across the Group delivered a collective PBT of KES 11.7 billion in the period. These outcomes are flat year on year largely driven by a tight interest rate environment which has elevated our cost of funds and pressured our profit margins. Despite these challenges, we remain committed to strategically managing our balance sheet and optimizing our financial performance to sustain our growth trajectory.”
The company’s non-banking subsidiaries including Investment Banking, Bancassurance and Leasing, contributing Ksh. 0.6 billion in profitability. Collectively the units have achieved a 56% year-on-year growth.
NCBA has launched initiatives during the period including:
- The SME Development Programme partnership with Strathmore Business School which has impacted over 1500 business owners since inception
- Scheme agreements with several vehicle dealers including Isuzu, CFAO, Simba and Inchcape which helped sustain NCBA’s Asset Finance market leadership at 37%
- Waiver of monthly account maintenance fees for retail banking customers to cushion economic shocks and drive customer acquisition.
The company has helped to accelerate and promote financial inclusion across the region by disbursing Ksh. 478 billion worth of Digital Loans. The company has invested in digital platforms and included services such as the ability to invest on the bank app, instant digital loans and additional pay bill features.
NCBA has invested in various sustainability projects. These include awarding 169 education scholarships, planting 175,044 trees, mobilizing green & sustainable financing worth KES 6.5 billion, catalyzing socioeconomic community impact through regional golf activations and upskilling 90% of NCBA staff through the ‘I Change the Story’ program.
The 100% acquisition of AIG Kenya has strengthened NCBA’s position in the financial services industry by tapping into the Ksh. 309 billion insurance industry.
Looking Ahead: Gachora remarked, “The economic outlook for the latter half of the year presents a nuanced blend of optimism and caution. In Kenya, we have observed positive trends with inflation easing to 4.6% and the local currency stabilizing against major currencies. We are encouraged by the Government’s commitment to support sustainable growth, to maintain fiscal discipline, and to continue fostering a favorable financial environment. These efforts will be key in driving economic progress and supporting the ongoing success of the private sector.”
The NCBA Group Board of Directors have recommended an interim dividend of Ksh. 2.25 for every ordinary share.