NCBA Group has reported a 2 per cent growth in its profit after tax to Sh21.9 billion in its full-year 2024 financial results, compared to a Sh21.5 billion net profit it posted in 2023.
The bank also marked a significant milestone in its digital lending business, crossing the Sh1 trillion mark in loan disbursements.
The Group attributed its digital lending expansion to strategic partnerships that have greatly enhanced financial access for more than 60 million customers across Africa.
This surge in digital transactions contributed to a 23 per cent year-on-year increase in loan disbursements, reinforcing NCBA’s position as a key player in digital financial services.
The bank’s non-performing loan (NPL) ratio stood at 11.2 per cent, a figure the Group linked to “disciplined credit underwriting, proactive portfolio monitoring, and strong customer engagement strategies.”
Read More
NCBA stated that its impairment coverage remains at 60 per cent, with adequate capital provisions in place.
Despite a 10 per cent increase in operational costs driven by digital transformation investments, network expansion, and operational efficiency measures, NCBA said these expenditures have strengthened the Group’s long-term growth prospects.
NCBA Group Managing Director John Gachora said these investments have strengthened the bank’s resilience and positioned it for sustainable growth despite external economic challenges.
"We are pleased to announce our Full Year 2024 financial results which reflect the resilience of our diversified business model," Gachora stated.
"The underlying trends of our P&L remained solid while our cost increase of 10 per cent was driven by targeted investments in digital transformation, network expansion and operational efficiency which have positioned us for long-term growth."
According to Gachora, "Amidst ongoing external headwinds, NCBA’s strategic imperatives have enabled us to deliver shareholder value."
Following the strong financial performance, the Board of Directors recommended a final dividend payout of Sh3.25 per share, bringing the total dividend for the year to Sh5.50 per share.
Looking ahead, Gachora noted that the bank would continue to focus on risk management and loan recovery while enhancing digital capabilities to drive sustainable growth.
“We continue to tighten credit risk management, enhance recovery efforts, and refine our lending strategies to maintain a healthy loan book. We remain focused on driving efficiency, deepening customer relationships, and leveraging digital channels for sustainable growth,” he said.
NCBA’s total assets stood at Sh666 billion, while customer deposits declined to Sh502 billion, a 13.4 per cent drop from the previous year.
The Group’s operating income reached Sh62.7 billion, while its provision for credit losses declined by 40 per cent to Sh5.5 billion.
As NCBA navigates a changing economic landscape, its investment in digital banking and efficiency improvements is expected to shape its growth trajectory in the coming years.
