Lower costs see NCBA profit rise 80 per cent to Sh4.7 billion
NCBA Group net profit for the six months to June has gone up by 80.8 per cent to Kes4.7 billion from Kes2.6 billion in the same period last year on lower costs.
The lender’s total operating expenses dropped to Kes16.3 billion from Kes17 billion after the bank cut its loan loss provisions to Kes5.9 billion from Kes7.6 billion last year.
Nevertheless, the bank has seen organic growth with total operating income growing by 13.1 per cent to Kes24.1 billion.
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NCBA Group Managing Director John Gachora said the strong performance was due to a steadily improving economic environment and early outcomes of the Group’s focus on its strategic initiatives anchored on customer experience.
“In addition to our investments in modernising our technology architecture in order to deliver better customer propositions & to structurally improve our operational efficiency & agility, we have embarked on a bold branch expansion strategy,” said Mr Gachora.
In the half, NCBA’s net interest income surged to Kes13.4 billion in the period from Kes11.2 billion while non-funded income increased to Kes10.7 billion from Kes10.1 billion recorded in June 2020.
The Group disbursed Kes272 billion worth of digital loans, being a 16 per cent increase year on year.
However, the Group’s gross non-performing loans surged to Ksh45 billion from Ksh38.7 billion, signaling the tough economic environment facing customers due to Covid-19 pandemic.
NCBA board of directors have, however, not recommended the payment of an interim dividend for the period.
