NCBA Group PLC has posted a net profit of KES15.1 billion for the nine months ending September 2024, reflecting a 3 percent increase compared to KES14.6 billion reported during a similar period last year.

However, the Nairobi Securities Exchange-listed lender saw assets remain flat at KES679 billion while loans disbursed via digital channels such as M-Shwari soared by 8 percent to close the period at KES751 billion.

The Group's operating income increased marginally at 0.6 percent to KES46.9 billion during the trading period which the bank termed an "exceedingly volatile operating environment."

NCBA Group CEO John Gachora said the tough trading environment impacted the regional institution's "cost of funding and put pressure on our Net Interest Income. However, our fee-based revenue continues to grow reflecting the growing diversity of our earnings mix."

He added, "Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33 percent) and improved asset quality.”

Overall, NCBA Kenya Bank business remained a key driver contributing 83 per cent of the Group’s KES18.4 billion gross earnings. 

The bank said that its focus on enhancing subsidiary contribution saw regional businesses in Uganda, Tanzania and Rwanda deliver a combined KES2.4 billion profit representing 13 percent of the Group PBT while all non-banking subsidiaries including the Investment Bank, Bancassurance, Leasing and NCBA Insurance (formerly AIG Kenya) contributed 4 percent of the Group PBT. 

At the recent NCBA Economic Forum held in Nairobi, Mr. Gachora noted that “The global and local operating environments are stabilizing as indicated by positive movements on inflation, currency exchange rates, and Central Bank Rates.”

“Going forward, with most of the key economic sectors and sub-sectors already back to their long-term-average growth rates, the role of the Government and Markets will be crucial to sustaining growth as well as enabling households and business enterprises to build buffers that will deal with future shocks. As NCBA, we are poised for sustainable growth on the back of improved macro conditions,” added Mr. Gachora.

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