Lender NCBA Group plans to disburse a total of Kes3.71 in interim dividends to shareholders following a strong performance in the six months to June that saw profit increase by 5 percent to Kes9.8 billion.

The Board of NCBA Group has announced investors will be getting Kes2.25 for every ordinary share held, up from Kes1.75 paid previously.

NCBA Group Managing Director John Gachora, said: “Our banking business across the Group delivered a collective PBT of Kes11.7 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,” he added.

Across the regional markets, NCBA Group Finance Director David Abwoga said the bank remains well capitalized, "providing us with ample capacity to invest in future growth."

In the half, NCBA's operating income went up marginally to Kes31.4 billion while customer deposits closed the period at Kes529 billion, reflecting 2.4 per cent increase from a similar time last year.

At the same time, total assets grew to Kes689 billion, 4.3 per cent up YoY as loans channeled through digital platforms increased by 4 percent to Kes478 billion. The lender's operating expenses expanded by 15.5 per cent to Kes16.5 billion.

As gross loans increased by 5 percent to Kes340 billion, the lender's provision for credit losses was reduced by 38.3 percent to Kes2.7 billion.

Non-banking subsidiaries, including investment banking, bancassurance, and leasing helped to buttress the overall performance, contributing Kes600 million in profitability, the bank explained.

Read also: NCBA waives monthly account maintenance fees

Sustainability agenda

At the same time, NCBA made progress in its sustainability agenda, implementing several environmental and social impact-related initiatives. These included planting over 175,000 trees, mobilizing green and sustainable financing worth Kes6.5 billion, catalyzing socioeconomic community impact through regional golf activations, and upskilling 90 percent of its staff under the 'I Change the Story' program.

"We've secured $50 million in green and sustainable finance from Proparco and installed 5 EV charging stations in Kenya and Rwanda, driving sustainable growth," added Louisa Wandabwa, NCBA Director of Strategy & Chief of Staff.

NCBA's full acquisition of AIG Kenya further strengthened the lender's position in the financial services industry by tapping into a sizeable Kes309 billion insurance industry.

"With regulatory approvals, we’re moving forward with [AIG] integration as per our transition plan," Wandabwa added.

This move embedded an over 50-year-old insurance business to enable customers to access all their financial products under one roof.

"The successful acquisition marks a new chapter, as AIG Kenya integrates into NCBA’s operations. We look forward to building on a strong foundation and expanding our impact," noted Stella Njunge, AIG Kenya Managing Director.

Looking ahead, Mr Gachora remarked, “In Kenya, we have observed positive trends with inflation easing to 4.6 percent 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."

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