NCBA Group PLC has posted a profit after tax of Ksh. 3.41 Billion for the quarter ending March 31, 2022. This represents a 20.3 per cent increase as compared to the Ksh. 2.84 Billion posted during a similar period in 2021.
This rise in profitability was attributed to increased operating income which rose to Sh13.14 billion in the period under review from Sh11.83 billion in the same period last year. Interest income also rose to 12.16 billion up from Sh11 billion in the same period last year due to heavy investing in government securities which rose from Sh4.3 billion in 2021 to Sh5.7 billion.
On the other hand, operating expenses rose from Sh1.9 billion up to Sh2.16 billion in the period under review, this was mostly driven by a rise in staff costs. Loan loss provisions remained relatively flat at Sh2.5 billion a slight decrease from Sh2.6 billion in the previous year.
In the period, Customer deposits rose from Sh4.2 billion in 2021 to Sh4.29 billion signaling the return on investing in new branches last year. The group has been investing in new branches both in its Kenyan business and in Rwanda where it’s opening 2 new branches.
The Group gross loans stood at kes 285.2 billion, representing 2 per cent year-on-year growth in all banking subsidiaries. Digital loan disbursements, however, increased significantly by 26 per cent to Ksh. 163.4 billion from Ksh. 129.9 billion during the same period a year ago, which is in line with NCBA Group’s digitization agenda and its commitment to supporting small businesses and individual customers during this period. The Group’s non-performing loan ratio stands at 15.8percent, largely in line with industry-wide levels.
John Gachora, Group Managing Director, NCBA Group, had this to say, “Our financial results this quarter, are a strong reflection that the post-merger foundation that we have built is very solid and is unlocking growth opportunities while delivering operational efficiencies.”