NCBA Group PLC, a leading financial institution, has announced its half-year financial results ending June 30th, 2023, showing a robust profit after tax of KES 9.3 billion.
This represents a significant increase of 20.3% compared to the KES 7.8 billion reported during the same period last year. The Group also reported a profit before tax of KES 12.4 billion, reflecting an 11% growth from KES 11.2 billion in H1 2022.
The impressive growth in profitability can be attributed to increased operating income and a decline in loan impairment charges. However, the Group’s operating expenses rose by 24.0% year on year due to inflationary pressures and continued investment in their ongoing 5-year strategy, set to conclude in 2024.
John Gachora, the Managing Director of NCBA Group, expressed his satisfaction with the strong operating results, attributing them to the consistent focus on the Group’s strategic priorities.
The Group’s excellent performance has allowed the Board of Directors to recommend an interim dividend declaration of KES 1.75 per share.
NCBA Group’s strategic priorities for the second half of the year remain unchanged. These include becoming a distinguished brand known for exceptional customer experience, expanding retail banking to enhance distribution, strengthening leadership in corporate banking and asset finance, driving digital transformation, and fostering a high-performance culture.
The Group’s regional subsidiaries in Tanzania, Rwanda, and Uganda played a significant role in the first half of the year’s performance. They collectively delivered a profit before tax of KES 1.4 billion, a remarkable improvement from the loss of KES 178 million reported in H1 2022. This turnaround was achieved through a recalibration of business models and right-sizing of operating models in these markets.
Gachora highlighted the continued growth of the core business in Kenya, with increased customer deposits in Retail and Corporate Banking. The Group has expanded its network by opening branches in Kenol, Murang’a, Chwele, Kahawa Sukari, and Eastleigh, with plans to open branches in Migori, Ruaka, and Wote in the near future. NCBA now boasts a network of 90 branches across 24 counties in Kenya.
NCBA recognizes the importance of its social responsibility and has invested in education, mentorship, and financial innovation initiatives, benefiting over 3,000 students from primary, tertiary, and university institutions.
The Group has also made significant contributions to reforestation, planting over 7 million trees in collaboration with government, private sector, and learning institutions. In addition, NCBA has invested over KES 50 million in golf sponsorships, promoting and democratizing the sport while uplifting communities.
Despite challenges such as rising inflation and forex pressure in the macro-environment, Gachora emphasized that NCBA Group’s dedicated team of over 3,000 professionals across the region remains committed to delivering financial solutions that help customers navigate the changing economic landscape.
He further noted that a resilient and strong banking sector performance will support credit availability for customers in both the private and public sectors, ultimately boosting investment and tax revenue for the nation.
