NCBA Group Reports 5% Profit Growth in H1 2024

NCBA Group posted a net profit of Ksh9.8 billion for the first half of 2024, representing a 5% increase compared to last year.

The Group’s financial performance was driven by strong growth in customer deposits, total assets, and digital loans.

Profit before tax reached Ksh12.2 billion, and shareholders will receive a dividend of Ksh2.25 per share. Total assets grew to Ksh689 billion.

“We are pleased to announce another set of strong financial results for the first half of 2024,” said the Group Managing Director of NCBA John Gachora.

“Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience.”

Digital loans disbursed reached Ksh478 billion, reflecting the bank’s focus on financial inclusion.

“Our commitment to customer experience has led to significant growth in our digital transactions. We will continue to leverage technology to enhance our services and remain a leader in the Kenyan market,” John Gachora, NCBA Group Managing Director.

Key Financial Highlights

Net Profit: Ksh9.8 billion (up 5%)
Profit Before Tax: Ksh12.2 billion
Customer Deposits: Ksh529 billion (up 2.4%)
Total Assets: Ksh689 billion (up 4.3%)
Digital Loans: Ksh478 billion (up 4.0%)
Operating Income: Ksh31.4 billion (up 1.1%)
Operating Expenses: Ksh16.5 billion (up 15.5%)
Provision for Credit Losses: Ksh2.7 billion (down 38.3%)

Nelly Wainaina, Group Director, Marketing, Communication and Citizenship, David Abwoga, NCBA Group Finance Director, Stella Njunge, AIG Kenya Managing Director John Gachora, NCBA Group Managing Director & CEO, Louisa Wandabwa, NCBA Director of Strategy and Chief of Staff Raphael Agung’, NCBA Ag. Group Director Global Markets & Chief Economist

As a result, shareholders will receive a dividend of Ksh2.25 per share a 28.6 per cent increase, equivalent to Ksh 3.71 billion.

NCBA remains optimistic about the economic outlook for the second half of 2024, despite potential challenges.

“The economic outlook for the latter half of the year presents a nuanced blend of optimism and caution. In Kenya, we have observed positive trends with inflation easing to 4.6% and the local currency stabilizing against major currencies. We are encouraged by the government’s commitment to support sustainable growth, maintain fiscal discipline, and continue fostering a favourable financial environment. These efforts will be key in driving economic progress and supporting the ongoing success of the private sector.”