The NCBA Group has posted a profit after tax of Sh. 21.5 billion in its full year 2023 results. This profit is a 56 per cent increase compared to the Sh. 13.8 billion that the bank reported during a similar period in 2022.
During the year under review, customer deposits closed at Sh. 579 billion, which was 15.3 per cent up year on year.Assets grew to Sh. 735 billion. This was a growth of 18.6 per cent year on year.
NCBA disbursed Sh. 930 billion in digital loans for a growth of 27.5 percent increase year on year while operating income increased by 4.5 per cent to Sh. 63.7 billion year on year.
Provision for credit losses went down 29.9 per cent to Sh. 9.2 billion.
While releasing the full year 2023 financial results, NCBA Group Managing Director, John Gachora said that the business has sustained growth momentum in line with their five-year strategic plan, which has positively enhanced shareholder value while supporting customers amidst a challenging macro-economic environment.
“Our regional subsidiaries (Tanzania, Rwanda, and Uganda) collectively delivered a profit before tax of Sh. 3.0 billion, a notable improvement from the loss of Sh. 308 million posted in full year 2022,” said Gachora.
He added that these results were driven by the Group’s turnaround strategy in Tanzania through recalibration of the business model and a rightsizing of the operating models in Uganda and Rwanda to accelerate growth.
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The Group’s asset finance market share and leadership position reached 34 per cent while retail asset finance disbursements increased by 18 per cent enabled by stronger relationships with distinctive strategic partnerships.
Digital lending for the period reached Sh. 930 billion for NCBA`s over 60 million customers across Africa while mobile transaction volumes grew 37 per cent year on year.
“Looking ahead to 2024, we will continue to execute within the Group`s strategic framework cycle which is now in its final year,” said Gachora.
“The prevailing economic uncertainties will require increased investment in enhancing our customer experience and the collective strengths of our diversified business model to sustain shareholder returns.”
Following the NCBA Group full year net profit, the Board of Directors recommended a final dividend of Sh. 3 per share bringing the total dividend for the year to Sh. 4.75 per share.