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NCBA Bank Opens Earnings Season With 5% Profit Rise

In the first three months to March 2024, most metrics of NCBA's businesses were solid.

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NCBA Bank Kenya, one of the country’s largest lenders, kicked off earnings season with a 5% rise after posting Ksh5.3 billion profit after tax in the 1Q of 2024.

In the first three months to this March, most metrics of its businesses were solid as it recorded an across-the-board strength compared to the same period last year when the bank netted a Ksh5.1 billion after-tax profit.

John Gachora, NCBA Group chief executive, called the quarter one of the strongest in the recent bank’s history, attributing it to the positive growth of operating income to Ksh16 billion, up nearly 3 per cent from the year before, and better than expected performance by its subsidiaries in Uganda, Tanzania, and Rwanda which earned a combined profit of Ksh705 million, representing 11% of total profitability.

“We are pleased to report strong financial results for the first quarter of 2024. Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with a strong contribution from our digital business and stable performance from our regional banking subsidiaries,” he said on Thursday.

During this period, Mr Gachora said the bank was also helped by investments in its nonbank financial institutions, like in bancassurance and leasing and asset financing, to which it is a leader with a 35% market share in the country.

Additionally, rising interest rates and expanded lending contributed to the profit jump as many Kenyans utilised most of its mobile lending platforms to borrow money for their daily needs.

“Access to credit through digital platforms including LOOP, M-Shwari and Fuliza partner platforms with KCB and Safaricom empowered over 60 million customers across Africa recording digital loan disbursements of Ksh232 billion, a 3.9 per cent increase year on year to meet their daily financial needs and cushion them against economic headwinds,” said the MD.

At the close of 1Q 2024, NCBA Bank is holding Ksh548 billion in customer deposits, after going up by 9.7%, and its total assets are at Ksh695 billion after growing by 10.5% year on year.

Read: Dubai Linked Islamic Bank Reports First Ever Profit

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JUSTUS KIPRONOhttp://www.businesstoday.co.ke
Justus Kiprono is a freelance journalist based in Nairobi, Kenya. He tracks Capital Markets and economic trends, infrastructure reform, government spending, and the financial impacts of state decision-making nationwide. You can reach him: [email protected]
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