• June 18, 2024
  • Last Update June 18, 2024 3:12 PM
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NCBA Group reports Sh5.3 Billion Profit After Tax

NCBA Group reports Sh5.3 Billion Profit After Tax

Kiambu,

Thursday May 23, 2024

KNA by Wangari Ndirangu

NCBA Group PLC has posted Sh5.3 billion after tax profit in their 2024 first quarter financial results.

This is 5 per cent increase compared to Sh5.1 billion reported during a similar period last year.

In a press release Thursday, the firm’s Profit before tax was Sh6.5 billion that translated to 2.2 per cent profit up year on year, while Customer deposits closed at Sh548 billion, 9.7 per cent up year on year. The total assets grew to Sh695 billion, 10.5 per cent up year on year.

Releasing the financial results NCBA Group Managing Director John Gachora said the bank has been able to achieve continued growth and success driven by positive operating income of Sh16 billion.

“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,” he said.

The regional subsidiaries in Uganda, Tanzania, and Rwanda, Gachora noted, had delivered a combined Sh705 million, representing 11 percent of group profitability; while the non-banking subsidiaries including the Investment Bank, Bancassurance and Leasing, all did well and contributed 4.9 percent of the Group profitability.

“We have maintained asset finance market share leadership at 35 percent and our growing deposit base indicates the ability to attract and serve more corporate and retail customers,” he said.

NCBA`s Enterprise Development Programme partnership with Strathmore Business School has been a major boost to SME growth and this aligns with the Government`s commitment to support small businesses, accounting for 33.8 percent of the National output.

“Business owners were trained in a 16-week course tailored to equip them with the tools and skills needed to identify and seize opportunities, foster innovation and unlock their business potential,” Gachora said.

“Access to credit through digital platforms including LOOP, M-shwari and Fuliza partner platforms with KCB and Safaricom empowered over 60 million customers across Africa recording digital loan disbursements of Sh232 billion, a 3.9 percent increase year on year to meet their daily financial needs and cushion them against economic headwinds,” the MD said.

Gachora said under Change The Story platform, NCBA’s journey to realize it`s 15 Sustainability Commitments is on track, noting that in collaboration with partners they were able to offer100 Students education scholarships, sponsored regional golf tournaments by investing Sh60 million for 10,000 golfers, funded numerous tree nurseries and economically empowered women groups via USD 50 million facility.

Besides, they installed EV charging station in Rwanda to enable electric vehicle adoption.

The partners include Proparco, Dr. Choksey Albinism Foundation, M-PESA Foundation, Edumed Trust, SOS Children’s Villages Kenya, Daraja Kenya Initiative, Palmhouse Foundation, KENSAP, WEDCO, Junior Achievement, Wangari Maathai Foundation, Kenya Forest Service, Karura Forest, Junior Golf Foundation and Kenya Golf Union.

Gachora added that the challenging business environment will benefit from the positive outcomes outlined in ongoing public and private sector economic policy interventions.

“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.” Gachora stated.

According to leading brand valuation consultancy, Brand Finance, NCBA has been recognized as Kenya’s second fastest-growing brand, at position six of the top 25 Most Value Brands.

NCBA Group operates a network of more than 100 branches in five countries; Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast and serving over 60 million customers, the NCBA Group is the largest banking group in Africa going by customer numbers.

Courtesy; KNA

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