Financial services group, NCBA Group PLC recorded a net profit of KSh7.8 billion for the year ended December 31, 2019, compared to KSh6.7 billion, a 16.4 percent jump from what was reported in a similar period in 2018.
The improved earnings rose from both loans and government securities.
The group, formed after the Commercial Bank of Africa (CBA) Group merged with NIC Group.
“Our operating income in the fourth quarter totaled KSh11.6 billion. We have continued to register very impressive growth in advances and deposit over the last two quarters despite being in a merger process,” said John Gachora group MD.
This was the first financial report the group is reporting since the two merged in October 2019.
Following the merger, the group saw its asset base close the year under review at KSh495 billion while the customer base stood at 50.1million.
Gachora said the exceptional items of KSh2.1 billion comprised merger costs, amortisation of intangibles and goodwill write off on consolidation, while KSh1.2 billion was classified as de-recognition of deferred tax assets in subsidiary entities.
The group made loan loss provisions of KSh6.2 billion.
The ratio of non-performing loans to the total loan book stands at 12.0 percent, in line with the industry average.
“Impairment provisions at the bank rose to KSh5.9 billion from KSh2.1 billion. The increase in provisions is driven by asset quality deterioration particularly in the transport and manufacturing sectors and on the mobile loan portfolio,” he said.
The board wants shareholders to approve a final dividend for the year of KSh1.50 per ordinary share, bringing the total dividend paid for the year to KSh1.75 per ordinary share compared to KSh1.25 in 2018.