NCBA Group PLC delivered a positive first quarter of 2024, posting a profit after tax of KES 5.3 billion. This represents a 4.7% increase compared to KES 5.1 billion in Q1 2023.
The group’s profit after tax increased 4.7% year-on-year, driven by strong operating income (KES 16.0 billion, up 2.8%) and a significant decline in loan impairment charges (down 30.9%).
Customer deposits grew 9.7% year-on-year to KES 548 billion, indicating strong customer confidence in NCBA.
Total assets increased by 10.5% year-on-year to KES 695 billion, demonstrating a healthy balance sheet.
Digital loan disbursements rose 3.9% year-on-year to KES 232 billion, highlighting the success of NCBA’s digital banking initiatives.
While operating expenses increased by 12.4% year-on-year to KES 8.1 billion, NCBA emphasises its commitment to cost efficiency for future quarters.
“Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with a strong contribution from our digital business and stable performance from our regional banking subsidiaries,” said John Gachora, Group Managing Director of NCBA.
Growth Strategies and Achievements
NCBA’s subsidiaries in Uganda, Tanzania, and Rwanda contributed 11% to group profitability, showcasing the success of regional expansion efforts.
Non-banking subsidiaries, including the Investment Bank, Bancassurance, and Leasing, reported positive operating profits, contributing 4.9% to group profitability.
“We have maintained asset finance market share leadership at 35% and our growing deposit base indicates the ability to attract and serve more corporate and retail customers. Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network,” said Gachora.
Looking Ahead
NCBA acknowledges the challenging business environment but remains optimistic about the impact of ongoing public and private sector economic policies.
“We remain committed to deliver against the Group`s strategic cycle now in its final year, which will drive sustainable growth and create value for shareholders,” said Mr. Gachora.
