CEO Bullish as NCBA Q3 Profit Jumps to Ksh15 Billion

NCBA Group PLC has posted a profit after tax of Ksh15.1 billion in its Q3 2024 financial results which is a 3% increase compared to Ksh14.6 billion reported during a similar period in 2023.

NCBA Group Managing Director, Mr John Gachora, said the underlying trends of its profit and loss remained solid against an exceedingly volatile operating environment which impacted cost of funding and  put pressure on net interest income. “However our fee-based revenue continues to grow reflecting the growing diversity of our earnings mix. Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33%) and improved asset quality,” Mr Gachora.

The Kenyan banking business remained a key driver, contributing 83% of the Group’s Ksh18.4 billion PBT. The Group’s focus on enhancing subsidiary contribution saw regional businesses in Uganda, Tanzania and Rwanda deliver a combined Ksh2.4 billion profit representing 13% of the Group PBT while all non-banking subsidiaries including the Investment Bank, Bancassurance, Leasing and NCBA Insurance (formerly AIG Kenya) closed with positive profitability contributing 4% of the Group PBT.

Affordable solutions such as the monthly maintenance fees waiver complimented by financial literacy engagements have helped cushion customers against economic shocks. Through organised mobile lending solutions in partnership with Telcos, the Group’s investment in digital financial inclusion services has enabled disbursement of Ksh751 billion to its more than 60 million customers across sub-Saharan Africa.

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Performance Highlights

• Total Assets closed at Ksh679 billion, remaining flat year on year.
• Digital Loans disbursed were Ksh751 billion, 8% increase year on year.
• Operating income of Ksh46.9 billion,0.6% up year on year.
• Operating expenses of Ksh28.6 billion,1.6% up year on year.
• Provision for credit losses was Ksh4.1 billion, 32.8% down year on year.
• Profit before tax of Ksh18.4 billion, 1% down year on year.
• Profit after tax of Ksh15.1 billion, 3% up year on year.

Mr Gachora said the NCBA brand has strengthened significantly, earning remarkable regional and global recognition in the financial industry. The Group’s has garnered top honours including, finalist in the Innovations Category by Customer Experience Africa Awards, Best Overall CX Solution awarded by VUKA Group, Best Banking Experience by KENCTAD, and AI Innovations shaping tomorrow’s CX by XEBO.AI.

On Sustainability, the Group was recognized for its work in Sustainable Finance by the Kenya Green Building Society  while on business lending solutions NCBA was named SME Financier of the Year by the International Finance Corporation at the Global SME Finance Forum held in Brazil.

The Group’s branch footprint reached 116 across the region with extended Kenya presence in Homabay, Kapsabet, Githunguri, Kitui, Nyahururu and Kerugoya while Rwanda opened new locations in Remera and Gisozi. The bigger network has continued growing NCBA’s customer base and ensured improved access to superior financial services.

 Future Otlook

At the recent NCBA Economic Forum held in Nairobi, Mr Gachora said, “the global and local operating environments are stabilising 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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