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NCBA Group Records Ksh 5.3 Billion Profit After Tax in  Q1 2024

NCBA Bank

NCBA Group has posted a profit after tax of KES 5.3 billion in its first quarter of 2024 financial results which is a 5 per cent increase compared to KES 5.1 billion reported during a similar period in 2023.

Key Highlights

  • Customer deposits closed at KES 548 billion9.7 per cent up year on year.
  • Total Assets grew to KES 695 billion10.5 per cent up year on year.
  • Digital Loans disbursed KES 232 billion3.9 per cent increase year on year.
  • Operating income of KES 16.0 billion2.8 per cent up year on year.
  • Operating expenses of KES 8.1 billion,12.4 per cent up year on year
  • Provision for credit losses was KES 1.4 billion30.9 per cent down year on year.
  • Profit before tax of KES 6.5 billion2.2 per cent up year on year.
  • Profit after tax of KES 5.3 billion4.7per cent up year on year.

NCBA has achieved continued growth and success driven by positive operating income of 16 billion and a decline in loan impairment charges by 30.9 per cent year on year. On the back of cost efficiency prioritization, operating expenses resulted in a 12 per cent year on year increase.

“We are pleased to report strong financial results for the first quarter of 2024,” said John Gachora, Group Managing Director of NCBA. “Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with strong contribution from our digital business and stable performance from our regional banking subsidiaries.”

The regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined KES 705 million, representing 11% of group profitability; while the non-banking subsidiaries including the Investment Bank, Bancassurance and Leasing all reported positive operating profit and contributed 4.9% of the Group profitability.

NCBA has consistently invested in its priority of becoming a distinguished brand known for customer experience. According to leading brand valuation consultancy Brand Finance, NCBA has been recognized as Kenya’s second fastest-growing brand, up 44% in 2024 to rank at position 6 of the Top 25 Most Value Brands. This is a demonstration of relentless efforts in brand building that aligns well with customer needs.

“We have maintained asset finance market share leadership at 35% and our growing deposit base indicates the ability to attract and serve more corporate and retail customers. Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network.”said Gachora.

Aligned with the Government’s commitment to support small businesses accounting for 33.8% of the National output, NCBA`s Enterprise Development Programme partnership with Strathmore Business School was a major boost to SME growth. Business owners were trained in a 16 week course tailored to equip them with the tools and skills needed to identify and seize opportunities, foster innovation and unlock their business potential.

NCBA continued to pioneer financial inclusion across Africa for its over 60 million customers recording digital loan disbursements of KES 232 billion. Access to credit through digital platforms including LOOP, Mshwari and Fuliza partner platforms with KCB and Safaricom empowered customers to meet their daily financial needs and cushion them against economic headwinds. 

Under Change The Story platform, NCBA’s journey to realize it`s 15 Sustainability Commitments is on track. Through noteable partnerships including Proparco, Dr. Choksey Albinism Foundation, M-PESA Foundation, Edumed Trust, SOS Children’s Villages Kenya, Daraja Kenya Initiative, Palmhouse Foundation, KENSAP, WEDCO, Junior Achievement, Wangari Maathai Foundation, Kenya Forest Service, Karura Forest, Junior Golf Foundation and Kenya Golf Union, NCBA impacted:

  • Over 100 Students who were beneficiaries of education scholarships
  • 10,000 golfers by investing KES 60 million in inclusive regional tournaments 
  • Tree growing mobilization through funding nurseries for 400,000 seedlings
  • Green financing and women economic empowerment via a USD50 million facility
  • Installation of EV Charging station in Rwanda to enable electric vehicle adoption

Looking ahead, Gachora added that “The challenging business environment will benefit from the positive outcomes outlined in ongoing public and private sector economic policy interventions. We remain committed to deliver against the Group`s strategic cycle now in its final year, which will drive sustainable growth and create value for shareholders,” said Mr. Gachora.

Also Read: NCBA Group reports Profit After Tax growth of 56% to Ksh 21.5 billion 

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