NCBA Group Back in the Black, Net Profit Rises to Ksh 2.84 bn in Q1

NCBA Group PLC has recorded an after tax profit of KES 2.84 billion for the quarter ending March 31, 2021. This was an increase of 74% compared to KES 1.6 billion that NCBA Group posted during a similar period in 2020.

NCBA Group Plc, Tuesday reported a net profit of Ksh 2.84 billion for the quarter ending March 31, 2021  on account of higher non-interest income. 

In the same period in FY20, the lender had posted Ksh 1.6 billion.

NCBA Group Managing Director, John Gachora said the results reflect strong underlying performance across all areas of the business and a slowly improving economy.

“We view 2021, as our transition year following the finalization of the merger and consolidation of all entities, systems and processes of CBA Group and NIC Group across the region in 2020. With the conclusion of this phase, the NCBA Group now has a solid foundation from which to springboard and boldly pursue its long-term strategy,” he said.

Other Highlights

Total assets increased to Ksh 542 billion, representing strong growth of 6% year on year. 

Customer deposits in the period increased by 11% year on year attributed to strong business development efforts that attracted new customers to the Group.

Net interest income recorded a 20% increase year on year due to growth in interest income from treasury investments and a reduction in interest expense following the retirement of NCBA Group’s medium-term note in Q3 2020

The overall effect was that operating income in the period closed at Ksh 11.8 Billion representing 8% growth against prior year performance.

 The company gross loans stood at Ksh 283 billion, representing 2% year on year growth in all banking subsidiaries.  

NCBA Group’s non-performing loan ratio stands at 13.99% in line with industry-wide levels given the impact of COVID-19.