NCBA Group PLC has demonstrated impressive financial performance in its third-quarter results ending September 30, 2023, reporting a notable 14.4 per cent increase in profit after tax, reaching Sh14.6 billion compared to Sh12.8 billion in the same period last year.
The financial report reveals several key highlights, including a substantial 19 per cent year-on-year growth in customer deposits, closing at Sh548 billion.
Assets witnessed a commendable 14 per cent increase, reaching Sh679 billion, while digital loans disbursed by NCBA Group surged by 33 per cent, totalling Sh695 billion.
The operating income also experienced a steady 2 per cent year-on-year increase, amounting to Sh46.7 billion.
Noteworthy is the 27 per cent reduction in the provision for credit losses, totalling Sh6.1 billion, contributing to the positive trajectory.
The profit before tax rose by 2 per cent, standing at Sh18.6 billion.
John Gachora, the Managing Director of NCBA Group, attributed this success to the organization's commitment to strategic priorities.
"These robust financial results are attributable to a laser focus on our key strategic priorities to support our customers and grow shareholder returns," Gachora emphasised.
The report said the positive momentum was further boosted by the significant contributions of regional subsidiaries in Tanzania, Rwanda, and Uganda, collectively delivering a profit before tax of Sh2.3 billion, a noteworthy improvement from the Sh312 million loss in Q3 2022.
NCBA expressed its dedication to accessibility by its expansion activities, adding branches in Muranga, Kenol, Chwele, Migori, Kahawa Sukari, Eastleigh, Wote, and Ruaka, expanding the branch network to 107.
Remaining among market leaders in asset finance with a 34 per cent market share, NCBA continued to focus on corporate customers, innovative solutions and strengthened dealer partnerships.
Embracing digital transformation, NCBA achieved Sh695 billion in digital lending for over 60 million customers across Africa.
The bank launched the "Change the Story" Sustainability platform, unveiling 15 Bold Sustainability Commitments, marking a crucial step towards a greener and more sustainable future.
In a strategic move, NCBA also announced its intention to acquire 100 per cent of AIG Kenya Insurance Company Limited, pending regulatory approvals. John Gachora explained the rationale, stating, "We believe that by bringing together NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities, we will accelerate towards our ambition to become a universal bank that addresses a full set of our customers’ financial needs."
Despite potential risks, Gachora expressed optimism about the full-year performance prospects, acknowledging the impact of "higher for longer" interest rates and the recent IMF staff-level agreement providing an immediate release of USD 638 Million, which is expected to enhance the country's growth prospects.
"We will continue with our unwavering commitment to our customers, employees, and the communities we serve and are confident in our ability to continue delivering sustainable growth and creating value for all our stakeholders," Gachora concluded.