NCBA has reported a Ksh. 5.3 billion net profit in the first quarter of 2024. This is a 5% increase as compared to 5.1 billion reported for the same period last year.
The rise in profitability was on the back of 2.8 per cent rise in the operating income to Ksh. 16 billion. This was due to a 7% rise in the non-interest income to Ksh. 7.7 Billion while the interest income declined by 1% to Ksh. 8.2 Billion.
On the other hand, operating expenses rose by 3% to Ksh. 9.4 Billion largely on the back of an 11% rise in the staff costs to Ksh. 3.2 Billion. There was a decline in loan impairment charges by 30.9 per cent year on year. The marginal rise in the operating expenses was on the back of cost efficiency prioritization.
During the period, customer deposits closed at KES 548 billion, 9.7 per cent up year on year. Total assets grew to KES 695 billion, 10.5 per cent up year on year. While digital loans disbursed KES 232 billion, 3.9 per cent increase year on year.
The regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined KES 705 million, representing 11% of group profitability; while the non-banking subsidiaries including the Investment Bank, Bancassurance and Leasing all reported positive operating profit and contributed 4.9% of the Group profitability.
“We are pleased to report strong financial results for the first quarter of 2024,” said John Gachora, Group Managing Director of NCBA. “Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with strong contribution from our digital business and stable performance from our regional banking subsidiaries. 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.”
NCBA has consistently invested in its priority of becoming a distinguished brand known for customer experience. According to leading brand valuation consultancy Brand Finance, NCBA has been recognized as Kenya’s second fastest-growing brand, up 44% in 2024 to rank at position 6 of the Top 25 Most Value Brands. This is a demonstration of relentless efforts in brand building that aligns well with customer needs.
Aligned with the Government’s commitment to support small businesses accounting for 33.8% of the National output, NCBA`s Enterprise Development Programme partnership with Strathmore Business School was a major boost to SME growth. Business owners were trained in a 16 week course tailored to equip them with the tools and skills needed to identify and seize opportunities, foster innovation and unlock their business potential.
NCBA continued to pioneer financial inclusion across Africa for its over 60 million customers recording digital loan disbursements of KES 232 billion. Access to credit through digital platforms including LOOP, Mshwari and Fuliza partner platforms with KCB and Safaricom empowered customers to meet their daily financial needs and cushion them against economic headwinds.
Looking ahead, Gachora added that “The challenging business environment will benefit from the positive outcomes outlined in ongoing public and private sector economic policy interventions. 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.