NCBA Group, partially owned by the family of retired President Uhuru Kenyatta, has posted a profit before tax of Ksh6.4 billion in its Q1 results ending March 31, 2023, which is a 32 per cent increase compared to Ksh4.8 billion reported during a similar period last year.
The Group registered a profit after tax of Ksh5.1 billion, representing 49 per cent growth up from Ksh3.4 billion in Q1 2022.
The lender’s assets grew to Ksh629 billion, 7 per cent up year on year while customer deposits closed at Ksh500 billion, 7 per cent up year on year.
NCBA Group disbursed Ksh223 billion in digital loans, a 37 per cent increase year-on-year.
Operating income of Ksh15.5 billion, 18 per cent up year on year while operating profit before loan loss provisions of Ksh8.3 billion, 10 per cent up year on year.
Provision for credit losses was Ksh2.0 billion, 23 per cent down year on year.
Growth in profitability was attributed to an increase in operating income and a decline in loan impairment charges by 23 per cent.
“These strong operating results are attributable to continued focus on our strategic priorities, growth in customer numbers and improvement in regional entities profitability. Our market-leading forex capabilities have led to an increased customer base and transaction volumes,” NCBA Group Managing Director John Gachora remarked.
The Group’s regional footprint across five key markets in Africa; Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast has increased the opportunity to be relevant to more customers. All regional subsidiaries are contributing positively to the Group following 2022 turnaround efforts and increasing the Group’s diversification of revenues.
“We have a stable and growing deposit base which indicates our ability to invest and attract more retail and corporate customers by offering a greater superior experience and convenience through a bigger network. Our systematic branch expansion has allowed us to cover 26 counties in Kenya, and we expect 36 in 2023 with a target to add another 10 in 2023, which will enhance job opportunities across the regions we operate in,” said Gachora.
Through NCBA’s Digital Banking Business, the Group continued servicing over 60 million customers with organized mobile lending solutions through partnerships with Telcos across Africa.
In the period under review, NCBA maintained its positioning as the most extensive digital banking solutions provider, with Ksh223 billion in digital loans disbursements representing a 37 per cent year-over-year growth.
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