NCBA Group has posted a 3 per cent increase in its profit after tax to Sh15.1 billion in its Q3 2024, compared to the Sh14.6 billion it reported during a similar period in 2023.

In the stellar financial results released on Wednesday, November 27, 2024, NCBA’s total assets remained steady at Sh679 billion, compared to the first 9 months of 2023.

During the period in review, the Group’s disbursed digital loans increased by 8 per cent to Sh751 billion in Q3 2024.

NCBA Group’s operating income also rose by 0.6 per cent to Sh46.9 billion in the quarter in review, as its operating expenses went up by 1.6 per cent to Sh28.6 billion.

The Group’s Kenya business spearheaded its profits drive contributing 83 per cent of its Sh18.4 billion pre-tax profit, as its Uganda, Tanzania and Rwanda subsidiaries delivered a combined Sh2.4 billion profit (13 per cent of Group PBT), as non-banking subsidiaries (Investment Bank, Bancassurance, Leasing and NCBA Insurance) contributed 4 per cent of Group PBT.

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In Q3 2024, NCBA Group’s provision for credit losses went down substantially by 32.8 per cent to Sh4.1 billion.

NCBA Group Managing Director John Gachora lauded the continued strong performance in the third quarter of 2024 and projected stellar performance in the full year financial results.

“The underlying trends of our P&L remained solid against an exceedingly volatile operating environment which has impacted our cost of funding and put pressure on our Net Interest Income,” noted Gachora.

He said the Group’s fee-based revenue has continued to increase saying it was indicative of the companies measures to diversify its earnings.

He added: “Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33 percent) and improved asset quality.”

NCBA’s Kenya bank business remained a key driver contributing 83 per cent of the Group’s Sh18.4 billion PBT, with its Uganda, Tanzania and Rwanda subsidiaries delivering a combined Sh2.4 billion profit (13 per cent of Group PBT).

Similarly, all NCBA Group’s non-banking subsidiaries, including Investment Bank, Leasing, Bancassurance and NCBA Insurance (formerly AIG Kenya), contributed 4 per cent of its PBT.

Affordable solutions such as the monthly maintainance fees waiver complimented by financial literacy engagements have helped cushion customers against economic shocks.

NCBA’s investment in digital financial services, through mobile lending partnering with telcos, saw it disburse Sh751 billion to more than 60 million customers in Sub-Saharan Africa.

This comes as Gachora, who spoke at a recent NCBA Economic Forum in Nairobi, predicted the Kenyan and global macroenvironment would stabilize from 2025 easing recent pressures.

“The global and local operating environments are stabilizing as indicated by positive movements on inflation, currency exchange rates and Central Bank Rates,” he predicted.

“Going forward, with most of the key economic sectors and sub-sectors already back to their long-term-average growth rates, the role of the government and markets will be crucial to sustaining growth as well as enabling households and business enterprises to build buffers that will deal with future shocks.

He also projected that NCBA Group would realise sustainable growth in the coming months on the back of the expected improvements in the regional macroeconomic conditions.