NCBA profit up 20 percent to Sh9.3 billion on less provisioning
Lender NCBA’s six-month period ended June has surged 20.3 percent to Kes9.3 billion on higher income and reduced provisioning for bad loans. Provision for bad loans decreased by 21 percent year on year, closing at Kes4.4 billion in the period, reflecting the group’s prudent risk management practices and its ability to navigate challenges.
The Group’s revenue grew by 7 percent in the half to Kesh31 billion driven by net interest income growth of 16.3 percent. NCBA disbursed Kes457 billion in digital loans, marking a remarkable 35 percent year-on-year increase. The balance sheet size grew by 9.3 percent to Kes660.3 billion attributable to customer deposits growth of 10.3 percent to Kes517 billion.
“NCBA is the current market leader in asset finance, commanding a market share of 36 percent. Our dedication to partnering with players in various sectors remains strong, fostering growth in Kenya’s key economic areas,” explained John Gachora, NCBA Group Managing Director.
The Group’s operating expenses were, however, elevated 24 per cent year on year on the back of inflationary pressures and continued investment in the current five-year strategy which comes to a close in 2024.
The Group’s regional subsidiaries in Tanzania, Rwanda and Uganda collectively delivered a profit before tax of Kes1.4 billion, a significant rise from the Kes178 million loss suffered in H1 2022. The bank said change in outcomes was a result of the Group’s turnaround strategy, which led to a recalibration of the business models in these markets and a right-sizing of the operating models.
