NCBA Group has posted a 20.3 per cent growth in post-tax profit to Sh9.3 billion in its first half of the year ending June 30, 2023, compared to Sh7.8 billion it posted in the same period last year.

Its pre-tax profit stood at Sh12.4 billion, an 11 per cent growth from Sh11.2 billion recorded in H1 2022.

During that period, NCBA Group’s assets increased by 9 per cent to Sh660 billion, while the customer deposits also went up by 10 per cent year on year to close at Sh517 billion.

NCBA disbursed Sh457 billion in digital loans, marking a 35 per cent surge, while operating income grew 7 per cent to Sh31.0 billion and credit loss provisions reduced 21 per cent to Sh4.4 billion.

“These strong operating results are attributable to consistent focus on our strategic priorities,” said NCBA Group MD John Gachora during the release of the financial results.

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John Gachora. PHOTO/NCBA

During the six months, the lender’s operating expenses rose 24 per cent year on year due to inflationary pressures and continued investment in its five-year strategy ending in 2024.

"Our journey remains aligned with our 2023 plans and the execution of our comprehensive 5-year strategy set to conclude in 2024," said NCBA Director of Strategy and Chief of Staff Louisa Wandabwa. 

The Group's Board of Directors has proposed an interim dividend of Sh1.75 per share.

NCBA Director of Strategy and Chief of Staff Louisa Wandabwa. PHOTO/NCBA

NCBA says it will upscale its energies on retail banking, corporate banking and asset finance, and also drive digital transformation among other interventions in the second half of 2023.

“Despite tightening macro-economic conditions, we are on course to deliver on our 2023 plans. Our strong operating results are attributable to consistent focus on our strategic priorities," indicated Gachora.

The H1 performance was mainly driven by the Group’s Tanzania, Rwanda and Uganda subsidiaries, which collectively posted Sh1.4 billion in pre-tax profit up from the Sh178 million loss posted in H1 2022, with the growth credited to its business model revision.

NCBA Group Director, Finance and Strategy David Abwoga. PHOTO/NCBA

"A well-managed balanced sheet is our cornerstone, generating substantial returns on assets, enhanced profitability, and income," added NCBA Group Director, Finance and Strategy David Abwoga.  

In Kenya, Gachora says the core business grew on the back of a bigger and smarter network and enhanced customer experience as its branch network expanded to 90 in 24 counties.