NCBA Group has reported a robust profit after tax of Sh5.3 billion for the first quarter of 2024, reflecting a 5 per cent increase from the Sh5.1 billion achieved during the same period in 2023.

The report highlights several key financial metrics including a 9.7 per cent rise in customer deposits, reaching Sh548 billion, and a 10.5 per cent increase in total assets, which now stand at Sh695 billion.

The group's operating income grew to Sh16 billion, up by 2.8 per cent year on year, while operating expenses surged by 12.4 per cent to Sh8.1 billion.

Notably, the provision for credit losses dropped significantly by 30.9 per cent to Sh1.4 billion.

This reduction contributed to a profit before tax of Sh6.5 billion, marking a 2.2 per cent increase from the previous year.

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NCBA's success was driven by a combination of higher operating income and reduced loan impairment charges.

“We are pleased to report strong financial results for the first quarter of 2024. Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with strong contribution from our digital business and stable performance from our regional banking subsidiaries," NCBA Group MD John Gachora remarked. 

The regional subsidiaries in Uganda, Tanzania, and Rwanda together contributed Sh705 million, representing 11 per cent of the group's profitability.

Non-banking subsidiaries, including the Investment Bank, Bancassurance, and Leasing divisions, also performed well, contributing 4.9 per cent to the group’s overall profitability.

NCBA's commitment to customer experience and brand building has been recognized by Brand Finance, which ranked NCBA as Kenya’s second-fastest-growing brand, up 44 per cent in 2024 to position six in the Top 25 Most Valuable Brands.

"We have maintained asset finance market share leadership at 35 per cent and our growing deposit base indicates the ability to attract and serve more corporate and retail customers. Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network," Gachora stated.

Additionally, NCBA's Enterprise Development Programme, in partnership with Strathmore Business School, has been instrumental in supporting small and medium-sized enterprises (SMEs).

This initiative aligns with the Government's focus on SMEs, which account for 33.8 per cent of the national output, by offering a 16-week training course designed to enhance business skills and innovation.

NCBA has also been a leader in financial inclusion, disbursing Sh232 billion in digital loans across its platforms, including LOOP, Mshwari, and Fuliza in collaboration with KCB and Safaricom.

These digital initiatives have empowered over 60 million customers to manage their financial needs effectively.

Looking forward, Gachora emphasized the importance of ongoing public and private sector economic policies in navigating the challenging business environment.

“We remain committed to deliver against the Group’s strategic cycle now in its final year, which will drive sustainable growth and create value for shareholders,” he concluded.