NCBA Bank has posted a profit after tax of KES 21.5 billion for its Full Year 2023 results. This is a 56% rise in profitability as compared to KES 13.8 billion for a similar period in 2022.
The rise in profitability was on the back of a rise in operating income by 4.4 percent to hit Sh63.6 billion from Sh60.9 billion. This was supported by a 13 percent expansion in net interest income to Sh34.6 billion. The higher net interest income served to offset a four percent dip in non-funded income, which was attributable to a slowdown in foreign exchange income.
On the other hand, total operating expenses remained largely unchanged at Sh38.2 billion from Sh37.9 billion in 2022 following a 30 percent slash in loan loss provisions. The reduction in loan loss provisions was despite a 13.8 percent pickup in gross non-performing loans (NPLs) to Sh44.5 billion even as the bank’s NPL ratio remained below the industry’s average at 12 percent.
NCBA Bank balance sheet has expanded to an asset size of Sh734.6 billion with loans and advances rising by 20.8 percent to Sh337 billion. With customer deposits rising by 15.2 percent, reaching Sh579.4 billion from Sh502.6 billion.
The bank has declared a final dividend of Sh3 per share taking its total payout to Sh4.75 from Sh4.25 per share or a cumulative payout of Sh4.9 billion.