NCBA Group’s profit after tax has increased to KES 9.8 billion in the first half of 2024 according to the Group’s financial results released on Monday. This is a 5.0 per cent increase compared to KES 9.4 billion reported during a similar period in 2023.
NCBA demonstrated strong financial fundamentals recording positive operating income of KES 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, Group Managing Director of NCBA. “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 KES 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.”
NCBA’s non-banking subsidiaries, including Investment Banking, Bancassurance and Leasing, buttressed the Group’s overall performance, contributing KES 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.” Gachora said.
The Group continued to accelerate and promote financial inclusion across the region by disbursing KES 478 billion worth of Digital Loans. This accompanied 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.
Looking Ahead: 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 of Directors to approve an interim dividend declaration of KES 2.25 for every ordinary share.
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