NCBA, Kenya’s third-largest bank by assets, said its first-quarter profit rose by 49 per cent to Ksh 5.1 billion compared to Ksh 3.4 billion reported during a similar period in 2022.
Growth in profitability was attributed to an increase in operating income and a decline in loan impairment charges by 23 per cent.
Despite the tough macroeconomic conditions, the Group’s prudent management of credit risk has resulted in an improved NPL ratio and a reduced cost of risk.
Commenting on the results, NCBA Group Managing Director, John Gachora remarked, “These strong operating results are attributable to continued focus on our strategic priorities, growth in customer numbers and improvement in regional entities profitability. Our market-leading forex capabilities have led to an increased customer base and transaction volumes.”
- Assets grew to Ksh 629 billion, 7 per cent up year on year
- Customer deposits closed at Ksh 500 billion, 7 per cent up year on year
- NCBA Group disbursed Ksh 223 billion in digital loans, a 37 per cent increase year-on-year
- Operating income of Ksh15.5 billion, 18 per cent up year on year
- Operating profit before loan loss provisions of Ksh 8.3 billion, 10 per cent up year on year
- Provision for credit losses was Ksh 2.0 billion, 23 per cent down year on year
- Profit before tax of Ksh 6.4 billion, 32 per cent up year on year
- Profit after tax of Ksh 5.1 billion, 49 per cent up year on year
The lender said during the period, client deposits grew seven per cent to KSh500 billion.
“We have a stable and growing deposit base which indicates our ability to invest and attract more retail and corporate customers by offering a greater superior experience and convenience through a bigger network,” Gachora stated.
“Our systematic branch expansion has allowed us to cover 26 counties in Kenya, and we expect 36 in 2023 with a target to add another 10 in 2023, which will enhance job opportunities across the regions we operate in.”
NCBA Group has operations in Kenya, Tanzania, Uganda, Rwanda, Ivory Coast and Ghana through its subsidiaries NCBA Bank (Tanzania), NCBA Bank (Uganda), NCBA Bank Rwanda Plc, Bridge Microfinance (Cote d’Ivoire) and LOOP DFS Ghana.