NCBA Group PLC has posted a profit after tax of Sh9.8 billion for the first half of 2024, marking a 5.0 per cent increase from the Sh9.4 billion reported in 2023.

This strong performance is underpinned by a diversified business model that continues to withstand a challenging environment.

Customer deposits grew 2.4 per cent to Sh529 billion, while total assets reached Sh689 billion, a 4.3 per cent year-on-year increase.

Digital loan disbursements surged by 4.0 per cent to Sh478 billion, and operating income rose 1.1 per cent to Sh31.4 billion.

Despite this, operating expenses increased by 15.5 per cent to Sh16.5 billion. Credit loss provisions dropped 38.3 per cent to Sh2.7 billion.

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NCBA’s profit before tax remained flat at Sh12.2 billion. However, customer deposits saw a 14 per cent decline, closing at Sh102 billion.

John Gachora, Group Managing Director of NCBA, expressed satisfaction with the results.

“We are pleased to announce another set of strong financial results for the first half of 2024,” he said.

“Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience.”

The Group’s overall profit before tax, including both banking and non-banking subsidiaries, stood at Sh11.7 billion.

Gachora acknowledged the challenges faced by the Group, notably the tight interest rate environment that has "elevated our cost of funds and pressured our profit margins."

Nevertheless, he emphasised the Group’s commitment to strategically manage its balance sheet and optimise financial performance.

NCBA's non-banking subsidiaries, which include Investment Banking, Bancassurance, and Leasing, contributed Sh0.6 billion in profits, showcasing a remarkable 56 per cent year-on-year growth.

These figures reflect the enduring versatility of NCBA's brand, which continues to unlock value for both customers and shareholders alike.

The Group's strategic initiatives included recognising SMEs through partnerships and maintaining a 37 per cent market share in asset finance.

In addition, NCBA disbursed Sh478 billion in digital loans, benefiting over 60 million customers across Africa.

Sustainability efforts were also prominent, with 175,044 trees planted, Sh6.5 billion mobilised for green financing, and 169 scholarships awarded.

Furthermore, NCBA’s acquisition of AIG Kenya strengthened its presence in the insurance market.

As a reward for shareholders, the NCBA Board of Directors approved an interim dividend of Sh2.25 per ordinary share, reflecting the Group's continued commitment to delivering value and confidence in its ongoing financial growth and resilience.