NCBA Group PLC has announced a profit after tax of Sh21.9 billion for the full year ended December 2024. This profit was a 2 percent increase from the Sh21.5 billion that the banking group realized in the previous 2023 financial year.
The profit came as the NCBA Group marked a fresh milestone in its lending capacity, with digital loans disbursed across its network surpassing Sh1 trillion. This represented a 23 percent year on year growth.
At the same time, total assets stood at Sh666 billion while customer deposits came in at Sh502 billion. In the year under review, operating income stood at Sh62.7 billion. Provision for credit losses reduced to Sh5.5 billion, which was down 40 percent year on year.
At the same time, operating expenses came in at Sh32.2 billion, reflecting a 10.6 percent increase due to digital transformation, network expansion, and operational efficiency investments.
During the year, NCBA’s regional subsidiaries in Uganda, Tanzania, and Rwanda reported a combined profitability of Sh3.2 billion, representing a 7 percent year on year increase. In the same vein, the lender’s non-banking subsidiaries, including its investment bank, bancassurance, leasing, and insurance businesses, recorded a 36 percent growth, contributing Sh1.2 billion to the total profitability.
The bank further announced that it is planning to enhance credit risk management, improve loan recovery efforts, and refine lending strategies to sustain a healthy loan book.
“We continue to tighten credit risk management, enhance recovery efforts, and refine our lending strategies to maintain a healthy loan book,” said John Gachora, NCBA Group Chief Executive Officer and Managing Director. “We remain focused on driving efficiency, deepening customer relationships, and leveraging digital channels for sustainable growth.”
Despite external economic challenges, NCBA demonstrated resilience, with disciplined credit underwriting and strong customer engagement contributing to a non-performing loan (NPL) ratio of 11.2 percent. The lender’s impairment coverage stands at 60 percent, highlighting its prudent risk management strategies.
The bank’s annual results further show that NCBA Group continued to strengthen its corporate banking position, growing its deposit base to Sh210 billion, supported by a revamped internet banking platform. In asset finance, NCBA retained its market leadership with a 35 percent market share, partnering with leading vehicle dealers such as Isuzu, CFAO, Simba, and Inchcape.
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NCBA also expanded its branch network to 119 locations across East Africa, adding 10 new branches in Kenya, Rwanda, and Uganda. Through its partnership with Postbank, NCBA onboarded 476 agents and 96 branches across Kenya, boosting financial accessibility.
“With a strong financial foundation and strategic investments in digital banking and sustainability, NCBA is well-positioned to navigate future market challenges while delivering long-term value for its shareholders and customers,” said Gachora.
Following these results, the bank announced that it will pay a final dividend of Sh3.25 per share. This will bring the total dividend payout for the year under review to Sh5.50 per share.
The performance comes barely a week after NCBA finalized the full acquisition of AIG Kenya Insurance, and the rebranding of this insurance business to NCBA Insurance in a move that is expected to further accelerate shareholder value in the 2025 financial year.
