NCBA Group PLC posted a 66 per cent rise in its consolidated net profit at Ksh 7.8 billion for the first six months of the year, backed by higher income.
The surge in profit is from Ksh 4.7 billion posted during a similar period last year.
The lender’s total assets grew by 11.8 per cent to KSh604.3billion
Net interest income increased to KSh14.8 billion as the lender’s loan book grew 4.5 per cent to KSh250.5 billion.
Non-interest funded income (NFI) grew by 32.7 per cent to hit KSh14.2 billion, supported largely by foreign exchange trading income which more than doubled to KSh5.3 billion from KSh2.4 billion.
The lender’s total operating expenses increased marginally to KSh17.1 billion from KSh16.3 billion as loan-loss provisions fell by 5.1 per cent to KSh5.6 billion.
The company’s Board has also declared an interim dividend of Ksh 2:00 per share, indicative of a 7.6 per cent dividend yield on its most recent closing price of KES.26.45 (24th August 2022).
According to analysts, NCBA continues to record robust financial performance with the Group’s actual performance.
“All things held constant at the operating income level, the Group’s growth is on trend to surpass our FY2022 estimate of Ksh53 billion – Ksh55 billion, given the robust growth in FX income as the bank profited from the dollar shortage that plagued the country in Q2 2022,” Sterling Capital Research states in its NCBA HY2022 Earnings Update Report.
“Prior quarters have come with concerns over NCBA’s deteriorating asset quality, but this trend was reversed given the ramp up in recoveries which improved the loan book.”