NCBA Group has posted a profit after tax of Kshs 9.8 billion in its first half of 2024 financial results, indicating a 5.0 per cent increase compared to Kshs 9.4
billion reported during a similar period in 2023.
During the period, the group’s customer deposits closed at Kshs 529 billion, a 2.4 per cent rise year-on-year (YoY) while total assets grew to Kshs 689 billion, translating to a 4.3 per cent rise year-on-year.
(TOP: John Gachora, the NCBA Group MD, while releasing the group’s first half year results for 2024).
Another key highlight recorded by NCBA Group is that Digital Loans disbursed were Kshs 478 billion, which indicated a 4.0 per cent increase year-on-year. This was attributed to the Group’s continued efforts to accelerate and promote financial inclusion across the region and within the jurisdictions where it has a presence. This was complemented by innovation on digital platforms services such as the ability to invest on the bank app, instant digital loans and additional pay bill features ensured that NCBA empowered over 60 million customers across Africa and enabled them achieve their financial goals.
NCBA Group has a number of digital platforms, the most popular being Loop DFS; online banking platform; and the NCBA Now app now in use in Kenya as well as the group’s other subsidiaries in Africa; Digital Ghana; M-Pawa in Tanzania; and Mo-Kash in Uganda and Rwanda.
The group’s Operating income stood at Kshs 31.4 billion, a 1.1 per cent up year-on-year with Operating expenses standing at Kshs 16.5 billion, a 15.5 per cent rise year-on-year.
Overall, NCBA Group demonstrated strong financial fundamentals recording positive operating income of Kshs 31 billion and a decline in loan impairment charges of 38.3 per cent year on year.
“We are pleased to announce another set of strong financial results for the first half of 2024,” said John Gachora, the NCBA Group MD. “Despite some
headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience.”
“Our banking business across the Group delivered a collective PBT of Kshs 11.7 billion in the period. These outcomes are flat year on year largely driven by a tight interest rate environment which has elevated our cost of funds and pressured our profit margins. Despite these challenges, we remain committed to strategically managing our balance sheet and optimizing our financial performance to sustain our growth trajectory.”
According to the 2024 first half year results, the group’s non-banking subsidiaries, including Investment Banking, Bancassurance and Leasing, have buttressed its overall performance, contributing Kshs 0.6 billion in profitability. Collectively, these units have achieved an impressive 56% year-on-year growth, underscoring the enduring strength and versatility of our brand in unlocking substantial value for both our customers and shareholders.
One of the Group’s strategic mandates to become a Distinguished brand known for customer experience was acknowlegded through awards across the region. NCBA was recognized for Excellence in Customer Experience at the Connected Banking Summit, second place overall winner in the KBA Customer Satisfaction Survey and Best Bank in Customer Experience by Africa Bank Awards. The Group was ranked 6th in Kenya, 85th in Africa’s most valuable brands and Top 5 most loved banks by women in Kenya.
NCBA’s quest to putting customers at the heart of its operations saw the Group implement notable initiatives including, the SME Development Programme partnership with Strathmore Business School which has impacted over 1500 business owners since inception, scheme agreements with several vehicle dealers including Isuzu, CFAO, Simba and Inchape which helped sustain NCBA’s Asset Finance market leadership at 37% and most recently, the waiver of monthly account maintenance fees for retail banking customers to cushion economic shocks and drive customer acquisition.
As a leading employer across the region, NCBA played a critical role in economic progress by creating additional job opportunities driven by expansion in the Group’s smart network comprising 115 branches and a focus on enhancing digital skills development for a future-proof digital at the core organization.
NCBA made progress towards achieving its sustainability commitments with the implementation of environmental and social impact related activities. These included awarding 169 education scholarships, planting 175,044 trees, mobilizing green and sustainable financing worth Kshs 6.5 billion, catalyzing socio-economic community impact through regional golf activations and upskilling 90% of NCBA staff through the ‘I Change the Story’ program.
The acquisition of AIG Kenya further strengthened NCBA’s position in the financial services industry by tapping into a sizeable Kshs 309 billion insurance industry. This strategic move embedded an over 50-year-old well known insurance business to enable customers conveniently access all their financial products under one roof.
Going forward, Gachora remarked: “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, to maintain fiscal discipline, and to continue fostering a favorable financial environment. These efforts will be key in driving economic progress and supporting the ongoing success of the private sector.”
The Group’s strong performance enabled the board to approve an interim dividend declaration of Kshs 2.25 for every ordinary share.
NCBA Group is a full-service banking group providing a broad range of financial products and services to corporate, institutional, SME and consumer banking customers. NCBA Group operates a network of more than 100 branches in five countries including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Serving over 60 million customers, the NCBA Group is the largest banking group in Africa by customer numbers. NCBA Bank Kenya PLC is among the top leading banks by assets. The Bank continues to play a key role in supporting Africa’s economic ambitions. The Bank is a Market Leader in Corporate Banking, Asset Finance and Digital Banking.
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