NCBA Group PLC Reports A Pre-Tax Profit Of Sh6.4B In 2023 First Quarter
John Gachora
By Our Correspondent
Worth Noting:
- Commenting on the results, NCBA Group Managing Director, John Gachora remarked, “These strong operating results are attributable to continued focus on our strategic priorities, growth in customer numbers and improvement in regional entities profitability. Our market leading forex capabilities have led to an increased customer base and transaction volumes.”
- NCBA’s strategic priorities remain unchanged as the Group heads into the second quarter: Become a distinguished brand known for customer experience, Scale retail banking to expand distribution, deepen leadership in corporate banking and asset finance, drive digital transformation, and develop a high performance culture.
- The Group`s regional footprint across 5 key markets in Africa; Kenya, Uganda, Tanzania, Rwanda and Ivory Coast has increased the opportunity to be relevant to more customers.
NCBA Group PLC has posted a profit before tax of Sh 6.4 billion in its this year’s first quarter results.
This represents a 32 per cent increase compared to Sh4.8 billion reported during a similar period last year.
The Group registered a profit after tax of Sh5.1billion representing 49 per cent growth up from Sh3.4 billion in the first quarter of last year.
According to a statement released yesterday, the bank’s assets grew to Sh629 billion which is a 7 per cent increase, customer deposits closed at Sh500 billion which is also a 7 per cent increase and it disbursed Sh223 billion in digital loans which represents a 37 per cent increase.
Further, the operating it recorded an income of Sh15.5 billion which is an 18 per cent increase while the
Operating profit before loan loss provisions of Sh8.3 billion which is 10 per cent increase.
The bank further stated that the provision for credit losses was Sh2.0 billion, a 23 per cent down year on year, profit before tax of Sh6.4 billion, 32 per cent up year on year while profit after tax of Sh5.1 billion, a 49 per cent up year on year.
Growth in profitability was attributed to increase in operating income and a decline in loan impairment charges by 23 per cent. Despite the tough macro-economic conditions, the Group’s prudent management of credit risk has resulted in an improved NPL ratio and a reduced cost of risk.
Commenting on the results, NCBA Group Managing Director, John Gachora remarked, “These strong operating results are attributable to continued focus on our strategic priorities, growth in customer numbers and improvement in regional entities profitability. Our market leading forex capabilities have led to an increased customer base and transaction volumes.”
NCBA’s strategic priorities remain unchanged as the Group heads into the second quarter: Become a distinguished brand known for customer experience, Scale retail banking to expand distribution, deepen leadership in corporate banking and asset finance, drive digital transformation, and develop a high performance culture.
The Group`s regional footprint across 5 key markets in Africa; Kenya, Uganda, Tanzania, Rwanda and Ivory Coast has increased the opportunity to be relevant to more customers.
All regional subsidiaries are contributing positively to the Group following 2022 turnaround efforts and increasing the Group’s diversification of revenues.
“We have a stable and growing deposit base which is an indication of our ability to invest and attract more retail and corporate customers by offering greater superior experience and convenience through a bigger network. Our systematic branch expansion has allowed us to cover 26 counties in Kenya, and we expect 36 in 2023 with target to add another 10 in 2023 which will enhance job opportunities across the regions we operate in.” said Gachora.
The affordable housing initiative of 105 per cent home financing offered by NCBA at 9.5 per cent interest rate with up to 25 years of repayment is aligned with Government commitments to address affordable housing needs and cost of living.
As the market leaders in asset finance, NCBA advocates for adoption of innovative solutions that meet the needs of the market. Partnerships signed with Delux Motors and D.Light Ltd provided unique financing solutions for a growing motor industry that has also embraced sustainable energy based products.
Through NCBA`s Digital Banking Business, the Group continued servicing over 60 million customers with organized mobile lending solutions through partnerships with Telcos across the Africa region. In the period under review, NCBA maintained its positioning as the most extensive digital banking solutions provider with Sh223 billion in digital loans disbursements representing a 37 per cent year over year growth.
The strength of NCBA’s universal business model is bearing fruit.
The Group’s Investment Bank which enables its customers to access a wide variety of investment advice and products, supports a savings culture which has seen year on year growth. The digitization of client engagement with NCBA’s unit trust products has facilitated onboarding of over 5,000 new unit trust customers.
NCBA connects company
success with social progress.
Over 100 students benefited from its 2023 education sponsorship initiative. Through Change The Story programme, NCBA with a number of partners has so far planted over 7million trees as a corporate response to reforestation which is aligned with the Government’s target to plant 15 billion trees in the next ten years.
NCBA’s continued investment in the sport of Golf through the NCBA Golf series is a significant milestone in promoting and democratizing the sport and uplifting the social and economic livelihood of communities.
Gachora recognized that “While the macro-environment remains suppressed for customers driven by rising inflation costs, forex pressure and market liquidity concerns, NCBA Group`s regional employee footprint of more than 3,000 professionals remains committed to deliver financial solutions that help customers navigate the changing microeconomic environment.
Additionally, NCBA’s over 27,000 listed shareholders continue showing investor confidence in one of the fastest growing businesses in the region.”
Looking ahead, Gachora added that the business environment is showing signs of slowing down but the Government initiatives are set to create a more predictable environment for investment. Concerns on forex is being addressed through concerted efforts of the Government, the Regulator and the Banking sector. In the short term, the wide margins seen in forex will disappear but this should spur more customer activity.
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