The Philip Ndegwa family has overtaken the Kenyatta family in the ownership of the NCBA Bank Group. This is after the Ndegwa family acquired an additional 31.6 million shares with a market value of around Sh. 1 billion.
Latest filings show that the Ndegwa family raised its stake in NCBA to 14.44 per cent from the previous 12.52 per cent in the year ended December 2022. This stake is now equivalent to a current market valuation of Sh. 8 billion.
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The Kenyattas currently hold a 13.2 per cent stake which is valued at Sh. 7.4 billion. The Ndegwa family has invested in NCBA through their investment vehicle known as First Chartered while the Kenyatta family has invested in the lender through the Enke Investment vehicle.
Over the past few months, the Ndegwas have been raising their stake in NCBA. Regulatory filings for August 2022 for instance indicated that the family bought an additional 10 million shares in NCBA Group worth Sh. 296 million, a vote of confidence in the bank’s financial prospects.
NCBA, which emerged from the merger between the listed NIC Bank and the private CBA Group in 2019, on saw its profits for the year to December 2022 more than double to Sh. 10.22 billion from Sh. 4.57 billion in 2020, helped by higher income and a fall in loan loss provisioning.
In the latest full year financial results released in March 2023, NCBA Group increased its dividends payout for the second straight year after net profit for the financial year ended December 2022 grew by 35 per cent to Sh. 13.78 billion.
In the first quarter of 2023, the NCBA posted a 48.5 per cent rise in net profit, with earnings increasing to Sh. 5.1 billion from Sh. 3.4 billion the previous corresponding quarter.