NCBA first quarter profit up 49 percent to Sh5.1 billion

NCBA Group’s net profit for the quarter that ended March has surged by 49 percent to Kes5.1 billion from Kes3.4 billion in Q1 2022 attributable to an increase in operating income and a decline in loan impairment charges.

Despite the tough macroeconomic conditions, the Group’s prudent management of credit risk has resulted in an improved NPL ratio and a reduced cost of risk.

In the quarter, loan loss provision eased by 23 percent down year on year to Kes2 billion in a period when the lender’s loans on digital platforms went up by 37 percent to Kes223 billion.

Further, customer deposits increased 7 percent to Kes500 billion even as assets grew by a similar percentage to close the quarter at Kes629 billion.

“Our systematic branch expansion has allowed us to cover 26 counties in Kenya, and we expect 36 in 2023 with a target to add another 10 in 2023 which will enhance job opportunities across the regions we operate in,” said NCBA Group Managing Director, John Gachora.

Read also: NCBA forex income up 147 percent to Sh12.5 billion

NCBA’s operating income went up by 18 percent up year on year to Kes15.5 billion.

“These strong operating results are attributable to a continued focus on our strategic priorities, growth in customer numbers, and improvement in regional entities’ profitability. Our market-leading forex capabilities have led to an increased customer base and transaction volumes,” Mr Gachora added.

The bank said its regional footprint across five key markets in Africa; Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast has increased the opportunity to be relevant to more customers.

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