NCBA Group posted a 3% increase in its profit after tax for Q3 2024, reaching Sh. 15.1 billion compared to Sh. 14.6 billion in the same period last year.
The Group recorded a profit before tax of Sh. 18.4 billion as its Kenyan banking operations contributed majorly to the growth by 83% of the total profit.
NCBA’s strategic emphasis on improving contributions from subsidiaries paid off, with regional operations in Uganda, Tanzania, and Rwanda generating a combined profit of Sh. 2.4 billion, accounting for 13% of the Group’s pre-tax profit.
Additionally, non-banking subsidiaries such as the Investment Bank, Bancassurance, Leasing, and NCBA Insurance (formerly AIG Kenya) attained positive profitability, collectively contributing 4% to the Group’s pre-tax earnings.
“We are pleased to announce continued strong performance in the third quarter of 2024. The underlying trends of our P&L remained solid against an exceedingly volatile operating environment which has impacted our cost of funding and put pressure on our Net Interest Income,” commented NCBA Managing Director John Gachora.
“However, our fee-based revenue continues to grow reflecting the growing diversity of our earnings mix. Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33%) and improved asset quality.” he added.
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The leading bank attributes its success to initiatives like waiving monthly maintenance fees and promoting financial literacy, which have provided customers with relief during economic challenges.
Furthermore, its collaboration with telcos on mobile lending solutions has enhanced digital financial inclusion. This has facilitated the disbursement of Sh. 751 billion to over 60 million customers across Sub-Saharan Africa.
The banking brand continues to earn wide regional an global recognition for the customer-oriented innovations they have made. NCBA Bank has won several awards in this sector including the Best Banking Experience by KENCTAD and SME Financier of the Year by the International Finance Corporation.
It has also made great efforts in sustainability and has been deservingly honored by the Kenya Green Building Society. Through the ‘Change the Story’ initiative, NCBA has planted more than 220,000 trees, trained more than 1,000 farmers on conservation and empowered more than 5,000 lives.
They have also been at the helm of education scholarships, mentorships and skills training provision to nearly 6,000 women and youth.
NCBA continues to support the larger community through initiatives such as the NCBA Golf Series and Junior Golf Foundation which reaches up to 7,000 players.
Currently the bank operates 116 branches, having new locations in Kenya and Rwanda. John Gachora noted that the financial institution is posed for brighter days ahead as the Global and Local operating environments continue to stabilize as shown by positive movements in inflation, exchange rates and CBK rates.
“Going forward, with most of the key economic sectors and sub-sectors already back to their long-term-average growth rates, the role of the Government and Markets will be crucial to sustaining growth as well as enabling households and business enterprises to build buffers that will deal with future shocks. As NCBA, we are poised for sustainable growth on the back of improved macro conditions,” said Mr. Gachora.
Quarter 3 Highlights
- Total Assets closed at Sh. 679 billion, remaining flat year on year.
- Digital Loans disbursed were Sh. 751 billion, 8% increase year on year.
- Operating income of Sh. 46.9 billion, 0.6% up year on year.
- Operating expenses of Sh. 28.6 billion,1.6% up year on year.
- Provision for credit losses was Sh. 4.1 billion, 32.8% down year on year.
- Profit before tax of Sh. 18.4 billion, 1% down year on year.
- Profit after tax of Sh. 15.1 billion, 3% per cent up year on year
