NCBA GROUP  RECORDS  KSHS. 5.3  BILLION  FIRST QUARTER  AFTER TAX PROFIT

 NCBA Group  has posted an  after tax  profit    of Kshs.  5.3 billion in its   first quarter of 2024 financial results .  This  is a  five  per cent increase compared to Kshs.  5.1 billion reported during a similar period in 2023. The regional lender recorded growth in key parameters.  To  start with, the customer deposits  closed at Kshs. 543 billion, reflecting a growth of  9.7 per cent year on year. By the same token,  NCBA’s     total assets grew to Kshs. 695 billion.  In line with the market trends,  the Group  disbursed digital loans amounting to Kshs. 232 billion- an increment of 3.9 per cent year on year.

NCBA has achieved continued growth and success driven by positive operating income of Kshs. 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.”

Regional business

The regional subsidiaries in Uganda, Tanzania  and Rwanda delivered a combined Kshs.  705 million, representing 11% of group profitability.  In the same vein,   the non-banking subsidiaries including the Investment bank, bancassurance and leasing all reported positive operating profit ,  contributing   4.9 per cent  of the Group’s    profitability.

NCBA has consistently invested in its priority of becoming a distinguished brand known for customer experience. According to  Brand  Finance,  a   leading brand valuation consultancy firm, NCBA has been recognized as Kenya’s second fastest-growing brand.  It  went  up  by   4 per cent  in 2024 to rank at position six   among    the Top 25 Most Value Brands. This is a demonstration of relentless efforts in brand building that align   well with the  customers’ needs. “We have maintained asset finance market share leadership at 35 per cent  and our growing deposit base indicates the ability to attract and serve more corporate and retail customers,” said  Mr. Gichana.   “  Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network,” he added.

Financial inclusion

 NCBA`s  enterprise development programme partnership with Strathmore Business School  is aligned  to  the government’s   commitment  to  support  small and medium  enterprises ( SMEs).    Recently,  business owners were trained in a  sixteen  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  has  also   continued to pioneer financial inclusion across Africa for its over 60 million customers recording digital loan disbursements of Kshs.   232 billion. Access to credit through digital platforms including LOOP, Mshwari and Fuliza partner platforms with KCB and Safaricom  has    empowered customers to meet their daily financial needs and cushion them against economic headwinds.

Change the story

Under Change The Story platform, NCBA’s journey to realize its   fifteen   sustainability commitments is on track. Through  key   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  has  the touched the lives  of   over  one  hundred  students who  have  benefited   from  education scholarships.

 It has also  supported ten  thousand   golfers by investing   Kshs. 60 million in inclusive regional tournaments.  Other initiatives   include : tree growing mobilization through funding nurseries for 400,000 seedlings, green financing and women economic empowerment via a USD50 million facility and installation of EV charging station in Rwanda to enable electric vehicle adoption

Looking ahead, Gachora  said :  “The challenging business environment will benefit from the positive outcomes outlined in ongoing public and private sector economic policy interventions. “   He added : “  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.”