NCBA Group reported a 96.2% increase in Q3 2022 Profit After Tax (PAT) to Ksh 12.8 billion compared to Ksh 6.5 billion in Q3 2021 on the back of non-interest income.
The bank reported a net income of KSh6.5 billion during a similar period last year.
Its interest earnings rose 14.9 per cent to KSh23.2 billion from KSh20.2 billion in quarter three last year, while non-funded income grew 39.8 per cent.
Operating income rose 26 per cent to KSh45.8 billion while loan impairment charges declined by KSh8.3 billion representing a 9 per cent decrease year on year.
Group Managing Director John Gachora said the results demonstrated the strength of its diversified business model and the progress of its strategic journey.
“We are immensely proud that NCBA Group has nimbly navigated the inflation challenges while also supporting its customers to continue operating seamlessly during a tightened foreign currency supply period,” said Gachora.
NCBA has not recommended the payment of an interim dividend for the period.
However, Sterling Capital Analysts note: “Given that NCBA announced an interim dividend of Ksh.2 in HY2022, we expect a final dividend of between Ksh2.5 – Ksh.3, bringing the total dividend to Ksh 4.5 – Ksh 5. This represents a robust dividend yield of between 14.8% – 16.5%.”
