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.

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.

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.