NCBA Group has announced a net profit of Sh. 9.8 billion for the half year period ended June 30, 2024. This profit represented a growth of 5 per cent from the Sh. 9.3 billion net profit that was recorded in the same period the previous year.
During the current period under review, subsidiary contribution to the NCBA Group top line improved to 19 per cent. Additionally, subsidiaries contributed Sh. 1.5 billion to the bank’s net profit. “In totality, our regional subsidiaries have contributed Sh. 1.5 billion in profit after tax, which is about 15 per cent of the Group’s profit,” said NCBA Group Finance Director David Abwoga.
The bank was also able to disburse Sh. 478 billion in digital loans in the first half of this year. This represented a growth of 4 per cent.
Customer deposits increased from Sh. 516.6 billion in the first half of 2023 to Sh. 528.9 billion in the first half of 2024. Total assets on the other hand grew from Sh. 660.3 billion in the first six months of 2023 to Sh. 689.1 billion in the current period under review.
Net interest income stood at Sh. 16.5 billion while non-interest income came in at Sh. 14.9 billion. At the same time, total operating income stood at Sh. 31.4 billion.
“We remain committed to be a distinguished brand known for customer experience. We have increased our footprint with 116 branches opened across the region,” said NCBA Group Managing Director and Chief Executive Officer John Gachora.
The lender has also seen growth in its digital operations. Currently, nearly 90 per cent of all transactions at the bank are conducted digitally. “Our core digital bank investments have improved and enhanced customer experience with 87 per cent of our transactions now executed digitally with growing transactional volumes,” said Mr. Gachora.
“We have maintained our leadership in asset finance which has grown from a market share of 32 per cent in 2023 to the current market share of 37 per cent. This has been through relentless innovation and building of strategic partnerships.”
Mr. Gachora further noted that the NCBA Group is currently the number two Corporate Bank in the East Africa region with a substantial deposit base of Sh. 213 billion. “We are primarily banking local businesses. We don’t pride ourselves in banking global businesses,” he said.
Following this performance, Mr. Gachora announced that the NCBA Group Board of Directors had approved an interim dividend of Sh. 2.25. In a similar period the previous year, NCBA Group had announced an interim dividend pay of Sh. 1.75 which was equivalent to a payout of Sh. 2.8 billion.
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“We are 85th most valuable brand in Africa, the sixth most valuable Kenyan brand in finance and the top 5 most loved brands in Kenya,” said Gachora.
