Galaxy S24 FE

News

NCBA’s Pre Tax Profit for H1 2024 Grew by 5% to Ksh 9.8 Billion

NCBA Kenya

NCBA Group has posted a profit after tax of Ksh 9.8 billion in its first half of 2024 financial results which is a 5.0 per cent increase compared to Ksh 9.4 billion reported during a similar period in 2023. 

S24 FE

Key Highlights 

Customer deposits closed at Ksh 529 billion, 2.4 per cent up year on year.

  • Total Assets grew to Ksh 689 billion, 4.3 per cent up year on year.
  • Digital Loans disbursed were Ksh 478 billion, 4.0 per cent increase year on year.
  • Operating income of Ksh 31.4 billion,1.1 per cent up year on year.
  • Operating expenses of Ksh 16.5 billion,15.5 per cent up year on year.
  • Provision for credit losses was Ksh 2.7 billion, 38.3 per cent down year on year.
  • Profit before tax of Ksh 12.2 billion, flat growth year on year.
  • Profit after tax of Ksh 9.8 billion, 5.0 per cent up year on year.

NCBA demonstrated strong financial fundamentals recording positive operating income  of Ksh 31 billion and a decline in loan impairment charges of 38.3 per cent year on year,  backed by the Group`s five strategic pillars; Become a Distinguished Brand Known for  Customer Experience, Scale Retail Banking, Deepen Leadership in Corporate Banking  and Asset Finance, Digital Transformation and a High-Performance Employee Culture.  

“We are pleased to announce another set of strong financial results for the first half of  2024,” said John Gachora, Group Managing Director of NCBA. “Despite some  headwinds presented by the current operating environment, our diversified business  model continued to demonstrate resilience.” 

“Our banking business across the Group delivered a collective PBT of KES 11.7 billion in  the period. These outcomes are flat year on year largely driven by a tight interest rate  environment which has elevated our cost of funds and pressured our profit margins.  Despite these challenges, we remain committed to strategically managing our balance  sheet and optimizing our financial performance to sustain our growth trajectory.”

Our non-banking subsidiaries, including Investment Banking, Bancassurance and Leasing, have buttressed our overall performance, contributing KES 0.6 billion in profitability.  

Collectively, these units have achieved an impressive 56% year-on-year growth,  underscoring the enduring strength and versatility of our brand in unlocking substantial  value for both our customers and shareholders. 

One of the Group`s strategic mandates to become a Distinguished brand known for  customer experience was acknowlegded through awards across the region. NCBA was  recognized for Excellence in Customer Experience at the Connected Banking Summit,  2nd place overall winner in the KBA Customer Satisfaction Survey and Best Bank in  Customer Experience by Africa Bank Awards. The Group was ranked 6th in Kenya, 85th  in Africa’s most valuable brands and Top 5 most loved banks by women in Kenya.  

NCBA’s quest to putting customers at the heart of its operations saw the Group  implement notable initiatives including, the SME Development Programme partnership  with Strathmore Business School which has impacted over 1500 business owners since  inception, scheme agreements with several vehicle dealers including Isuzu, CFAO, Simba and Inchape which helped sustain NCBA’s Asset Finance market leadership at 37% and  most recently, the waiver of monthly account maintenance fees for retail banking  customers to cushion economic shocks and drive customer acquisition. 

The Group continued to accelerate and promote financial inclusion across the region by  disbursing KES 478 billion worth of Digital Loans. This accompanied by innovation on  digital platforms services such as the ability to invest on the bank app, instant digital loans  and additional pay bill features ensured that NCBA empowered over 60 million customers  across Africa and enabled them achieve their financial goals. 

As a leading employer across the region, NCBA played a critical role in economic  progress by creating additional job opportunities driven by expansion in the Group`s  smart network comprising 115 branches and a focus on enhancing digital skills  development for a future-proof digital at the core organization. 

NCBA made progress towards achieving its sustainability commitments with the implementation of environmental and social impact related activities. These included  awarding 169 education scholarships, planting 175,044 trees, mobilizing green &  sustainable financing worth KES 6.5 billion, catalyzing socioeconomic community impact  through regional golf activations and upskilling 90% of NCBA staff through the ‘I Change  the Story’ program.  

The 100% acquisition of AIG Kenya further strengthened NCBA’s position in the financial  services industry by tapping into a sizeable KES 309 billion insurance industry. This strategic  move embedded an over 50-year-old well known insurance business to enable  customers conveniently access all their financial products under one roof.  

Looking Ahead: Gachora remarked, “The economic outlook for the latter half of the year  presents a nuanced blend of optimism and caution. In Kenya, we have observed positive  trends with inflation easing to 4.6% and the local currency stabilizing against major  currencies. We are encouraged by the Government’s commitment to support  sustainable growth, to maintain fiscal discipline, and to continue fostering a favorable  financial environment. These efforts will be key in driving economic progress and  supporting the ongoing success of the private sector.” 

The Group`s strong performance enabled the Board of Directors to approve an interim dividend declaration of KES 2.25 for every ordinary share. 

Also Read: NCBA Waives Monthly Maintenance Fees on Retail Banking Accounts Starting July 2024

About author

Editor at TechArena. I cover all things technology and review new gadgets as I get them. You can reach me on email: [email protected]
Related posts
News

Check Point Urges Action to Address Escalating Cybersecurity Challenges in Africa

News

ICANN Announces Applicant Support Program for New Generic Top-Level Domains (gTLDs)

News

A Look At Samsung Neo QLED 8K: The Power Of AI Upscaling

News

Airtel and UNICEF Transform Education in 13 African Countries Through Five-Year Partnership

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.