NCBA Group posts a 5% net profit of KES5.3 Billion in its Q1 earnings

By Victor MUJIDU

NCBA Group PLC posted a profit after tax of Ksh5.3 billion in its first quarter of 2024 financial results, which is a 5 per cent increase compared to Ksh5.1 billion reported during a similar period in 2023.

Similarly, the group announced an operating income of Sh16 billion and a decline in loan impairment charges of 30.9 per cent year on year.

“We are pleased to report strong financial results for the first quarter of 2024, and despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with strong contributions from our digital business and stable performance from our regional banking subsidiaries,” said John Gachora, Group Managing Director of NCBA.

The regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined Ksh705 million, representing 11 per cent of group profitability, while the non-banking subsidiaries, including the Investment Bank, Bancassurance, and Leasing, all reported positive operating profit and contributed 4.9 per cent of group profitability.

NCBA has consistently invested in its priority of becoming a distinguished brand known for customer experience. According to leading brand valuation consultancy Brand Finance, NCBA has been recognized as Kenya’s second fastest-growing brand, up 44 per cent in 2024 to rank at position 6 of the Top 25 Most Value Brands. This is a demonstration of relentless efforts in brand building that align well with customer needs.

“We have maintained asset finance market share leadership at 35 per cent 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.

Aligned with the government’s commitment to support small businesses, which account for 33.8 per cent of the national output, the NCBA’s Enterprise Development Programme partnership with Strathmore Business School was a major boost to SME growth.

Business owners were trained in a 16-week course tailored to equip them with the tools and skills needed to identify and seize opportunities, foster innovation, and unlock their business potential.

NCBA continued to pioneer financial inclusion across Africa for its over 60 million customers, recording digital loan disbursements of Ksh232 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 “The Story Platform,” NCBA’s journey to realize its 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, Junior Golf Foundation, and Kenya Golf Union, NCBA impacted:

Gachora added that in order to maximize value for its clients, the bank planned to promote a sustainable path for the future.

“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,” said Mr. Gachora.