NCBA first quarter profit up 5% to Sh5.3Bn

Regional lender NCBA Group has posted a net profit of Kes5.3 billion in its first quarter of 2024, reflecting a 5 percent increase compared to Kes5.1 billion reported during a similar period in 2023.

In the quarter, NCBA said its provision for loan losses went down by 30.9 per cent down year on year to Kes1.4 billion. Customer deposits closed at Kes548 billion, a 9.7 per cent uptick year on year even as total assets grew to Kes695 billion, 10.5 per cent jump.

At the same time, the bank disbursed Kes232 billion in digital loans, reflecting 3.9 per cent increase year on year. Operating income closed the quarter at Kes16.0 billion, a 2.8 per cent expansion year on year even as operating expenses soared by 12.4 per cent to Kes8.1 billion.

John Gachora, NCBA Group Managing Director and CEO, stated; “Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with strong contribution from our digital business and stable performance from our regional banking subsidiaries.”

NCBA’s units Uganda, Tanzania, and Rwanda delivered a combined Kes705 million, representing 11 percent of group profitability; while the non-banking subsidiaries including the Investment Bank, Bancassurance and Leasing all reported positive operating profit and contributed 4.9 percent of the entire business’ profitability.

NCBA has consistently invested in its priority of becoming a distinguished brand known for customer experience. According to brand valuation consultancy Brand Finance, NCBA has been recognized as Kenya’s second fastest-growing brand, up 44 percent in 2024 to rank at position 6 of the Top 25 Most Value Brands.

Read also: 18 SMEs benefit from NCBA skilling programme

Asset finance market

“We have maintained asset finance market share leadership at 35 percent and our growing deposit base indicates the ability to attract and serve more corporate and retail customers. Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network,” added Gachora.

In the period, NCBA continued to pioneer financial inclusion across Africa for its over 60 million customers, recording digital loan disbursements of Kes232 billion. Access to credit through digital platforms including LOOP, Mshwari and Fuliza partner platforms with KCB and Safaricom empowered customers to meet their daily financial needs and cushion them against economic headwinds.

Under “Change The Story” platform, NCBA’s journey to realize it`s 15 Sustainability Commitments is on track. Through noteable partnerships including Proparco, Dr. Choksey Albinism Foundation, M-PESA Foundation, Edumed Trust, SOS Children’s Villages Kenya, Daraja Kenya Initiative, Palmhouse Foundation, KENSAP, WEDCO, Junior Achievement, Wangari Maathai Foundation, Kenya Forest Service, Karura Forest, and Junior Golf Foundation and Kenya Golf Union, NCBA impacted:

Looking ahead, Gachora added that “The challenging business environment will benefit from the positive outcomes outlined in ongoing public and private sector economic policy interventions. We remain committed to deliver against the Group’s strategic cycle now in its final year, which will drive sustainable growth and create value for shareholders.”

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