NCBA Group has posted a 56 per cent growth in post-tax profit to Sh21.5 billion in the 2023 full year financial results, after posting a 13.3 per cent gross profit growth to Sh25.5 billion.
During the period in review, the bank’s operating income increased by 4.5 per cent to Sh63.7 billion, as its loan impairment charges decreased by 29.9 per cent.
In that period, the group’s operating expenses closed the year with a 19 per cent growth driven by inflationary pressures and an investment focus on the current strategic priorities.
During the 2023 fiscal year, NCBA’s customer deposits also realized a 15.3 per cent growth year on year to Sh579 billion, as digital loans disbursed grew 27.5 per cent to Sh930 billion.
Provision for the group’s credit losses went down 29.9 per cent to settle at Sh9.2 billion in 2023, even as the Kenyan lender’s assets realized a 18.6 per cent growth to Sh735 billion.
“The Business has sustained growth momentum in line with our five-year strategic plan, which has positively enhanced shareholder value while supporting customers amidst a challenging macro-economic environment,” said NCBA Group MD John Gachora.
NCBA’s regional subsidiaries in Tanzania, Rwanda and Uganda delivered a collective pre-tax profit of Sh3 billion, a remarkable comeback from a Sh308 million loss posted in FY 2022.
“Our fastest growing subsidiary is Rwanda, with a total asset growth of 56 per cent,” said NCBA Group Director Finance David Abwoga.
He added: “Our group assets increased by 19%, propelled by a solid customer deposit base and funding of Ksh 579 billion.”
However, NCBA Group's digital business experienced a 34 per cent decline mainly attributed to digital loan defaults during the period in review even as its digital lending book expanded.
“Access to digital credit remained a key focus, aiding customers' financial well-being. NCBA's digital lending hit Sh930 billion for over 60 million customers across Africa, with mobile transactions up 37 per cent year on year,” added Gachora.
NCBA has unveiled its intention to acquire 100 per cent stake in AIG Kenya Insurance Company Limited with the group revealing the said deal was awaiting regulatory approvals.
Owing to the Group`s stellar performance, the Board of Directors recommended a final dividend of Sh3.00 per share bringing the total dividend for the year to Sh4.75 per share.
