NCBA’s full year net profit for the year 2020 dipped by 42 per cent to Sh4.6 billion as the bank raised its provisions for loan losses.
The tier-one lender set aside Sh20.4 billion to cover expected losses from loans occasioned by the adverse effects of Covid-19 pandemic, compared to Sh6.25 billion set aside in 2019.
NCBA’s revenue from net interest income increased by 91 per cent to Sh25.5 billion at the close of 2020, from Sh13.3 billion at the close of 2019.
Non-interest income rose by 3 per cent to Sh20.9 billion from Sh20.3 billion the previous year.
NCBA, which has its eyes on small and medium enterprises, said it disbursed more than Sh432 billion in digital loans hence helping small businesses to cope with Coronavirus.
The lender also suspended and restructured loans for borrowers affected by Coronavirus.
“The Group granted loan moratoriums and restructured loans amounting to over Sh78 billion to corporate and retail customers as at the end of December 2020,” NCBA said.
Customer deposits at the bank increased to Sh421.5 billion in 2020 from Sh378.2 billion in the previous year as most of its operations went digital.
“NCBA upgraded its M-Shwari digital platform, drastically improving transaction capacity for its 35 million Kenyan customers. The Group plans to roll out the technology in Uganda, Rwanda, Tanzania and Ivory Coast in 2021,” the bank said.
Its loans and advances to clients decreased slightly to Sh248.5 billion from Sh249.4 billion in 2019, with bad loans growing to Sh40 billion when 2020 closed, from Sh33.7 billion in 2019.
While announcing its results, NCBA disclosed plans to upscale its retail banking business and provide enhanced customer experience to its more than 35 million clients across East Africa.
At the same time, NCBA board of directors proposed a final dividend of Sh1.50 per share.