Friday, February 7, 2025
HomeBusinessNCBA GROUP RIDES ON DIGITALIZATION  AND  OUTSTANDING   CUSTOMER  EXPERIENCE TO  POST  KSHS....

NCBA GROUP RIDES ON DIGITALIZATION  AND  OUTSTANDING   CUSTOMER  EXPERIENCE TO  POST  KSHS. 9.8 BILLION  HALF YEAR  PROFIT

Regional market leader in corporate banking, asset finance and digital banking  continues to register growth year on year

By George Gichuki

What stands out  :

. As part of its regional expansion agenda, NCBA Group  is hoping to make an  entry into the  Ghanian market by early 2025

. Shareholders will get an interim dividend of Kshs. 2.25 for every ordinary share

. The Group receives accolades because of  excellence in customer experience

Commercial    Bank   of  Africa  ( CBA) and NIC bank   merged in  2019 creating NCBA Group.  In  a  short span of five years, this  strategic  move  has borne fruits  beyond  measure. A market  leader  in corporate banking, asset  finance  and digital  banking,  NCBA Group  has a presence in Kenya, Uganda, Tanzania, Rwanda and  Ivory  Coast.

 According  to   Mr. John Gachora,  NCBA  Group  Managing Director,  upon  getting  the  necessary  approvals,  the lender  will  make an entry  into  the Ghanian market by  early next year  through  its  digital   banking   platform.  He   revealed this  while  releasing  the   Group’s  2024  first   half    year results.

Strong pillars

Riding  on its five  strategic  pillars – become a distinguished  brand known for  customer  experience, scale retail banking, deepen leadership in corporate banking and asset  finance, digital  transformation and a high  performance employee culture –  the lender   registered a profit after tax of Kshs. 9.8 billion in the said period. In comparison to Kshs. 9.4 billion reported during a similar period in 2023, this was an increase of 5.0 per cent year on year. “ We are pleased to announce another set of strong financial results for the first half  of  2024,” said Mr. Gachora.  “Despite some  headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience,” he added.

 Due to this strong performance, the board of directors has approved  an interim dividend  declaration of Kshs.2.25 for every  ordinary  share.

Banking business and subsidiaries

The NCBA  Group  banking  business posted a Kshs. 11.7 billion  profit  before tax  in the said  period. Mr. Gachora’s  attributed this performance  to the tight  interest rate environment  which  elevated the lender’s cost of funds and exerted pressure on its profit margins. “ Despite  these challenges, we remain committed to strategically managing our balance sheet and optimizing our financial performance to sustain our growth trajectory,” reassured Mr. Gachora.   

Contributing Kshs.0.6 billion in profitability, the  lender’s  non-banking subsidiaries –  including investment banking, bancassurance and leasing –  registered a very  impressive  performance.  “Collectively, these units have achieved an impressive 56% year-on-year growth, underscoring the enduring strength and versatility of our brand in unlocking substantial value for both our customers and shareholders,” Mr. Gachora further said.

From left to right – Nelly Wainaina, Group Director, Marketing, Communication and Citizenship, David Abwoga, NCBA Group Finance Director, Stella Njunge, AIG Kenya Managing Director, John Gachora, NCBA Group Managing Director and CEO, Louisa Wandabwa, NCBA Director of Strategy and Chief of Staff, Raphael Agung’ – NCBA Ag. Group Director Global Markets and Chief Economist.

Accolades

As outlined  in  one of its strategic  mandates,  NCBA Group  has lived up to its promise  of becoming a distinguished brand that stands out in customer experience. To that end, the lender was recognized for excellence  in customer experience at the Connected Banking Summit. Additionally, it was placed the second overall winner in the Kenya Bankers Association ( KBA) customer satisfaction survey  and the best bank in customer experience by Africa Bank Awards.

Financial  inclusion

Through  its  ambitious   digitalization agenda  across  Africa,  NCBA   Group has played a  pivotal  role in enhancing  financial inclusion. In this vein, it disbursed  digital  loans amounting  to Kshs. 478  billion  in the first  half  of  this year. “ We have disbursed  a  lot of loans digitally  to  our  customers, hence  supporting  them to meet  their short term needs,” said Mr. Gachora. This achievement,  accompanied by innovation on digital platforms services such as the ability to invest on the bank app, instant digital loans and additional pay bill features ensured that  the lender  empowered over 60 million customers across Africa and enabled them achieve their financial goals.

Further,  by expanding its smart network which  comprises  115 branches, as well as  enhancing  the development of digital  skills, NCBA created additional  job  opportunities  across Africa.

Citizenship agenda

NCBA  has also made progress towards achieving its sustainability commitments with the implementation of environmental and social impact related activities. These included  awarding 169 education scholarships, planting 175,044 trees, mobilizing green and sustainable financing worth Kshs.  6.5 billion, catalyzing socio- economic community impact  through regional golf activations and up- skilling 90% of   its    staff through the ‘I Change the Story’ programme.

A COMMITTED CITIZEN: A section of high school students who attended a mentorship retreat organized by Edumed Trust in partnership with NCBA at Moi Nairobi Girls.

Shared  prosperity

As  the  regional market leader in corporate banking, NCBA plays a pivotal  role in supporting the growth of the economies in the countries where it  has a presence. This  is because its corporate customers create employment and raise substantial  taxes for the exchequer in their respective countries among  other  key  contributions.  By  the same  token,  recently,  the lender  waived the monthly account maintenance fees  for   its retail  banking customers, hence cushioning them against economic shocks.  Moreover, the Group’s  subsidiary – NCBA investment  bank- has  developed products  which give its customers  a good return on their  money as they endeavour to  prosper in life. 

In the same regard,  by  fully  acquiring  AIG Kenya, NCBA  has   strengthened  its   position in the financial services industry.  Most  importantly,  this strategic move has   embedded an over 50-year-old well known insurance business to enable customers conveniently access all their financial products under one roof.

Optimism

Mr. Gachora  observed that  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,”  he said.  “We are encouraged by the government’s commitment to support sustainable growth, to maintain fiscal discipline, and to continue fostering a favourable financial environment. These efforts will be key in driving economic progress and  supporting the ongoing success of the private sector,” he added.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular