NCBA Group PLC has reported a 5% rise in profit after tax to KES 9.8 billion for the first half of 2024, up from KES 9.4 billion in the same period last year.
In the first half of 2024, NCBA’s total assets grew by 4.3% year-on-year to KES 689 billion, while customer deposits increased by 2.4% to KES 529 billion. The Group’s operating income stood at KES 31.4 billion, marking a modest increase of 1.1% from the previous year. Despite a 15.5% rise in operating expenses to KES 16.5 billion, NCBA demonstrated resilience through effective financial management and strategic initiatives.
John Gachora, Group Managing Director of NCBA, expressed satisfaction with the Group’s performance. “We are pleased to announce another set of strong financial results for the first half of 2024,” Gachora stated. “Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience.”
The Group’s profit before tax remained flat at KES 12.2 billion, a reflection of a tight interest rate environment which has increased the cost of funds and compressed profit margins. However, a notable decline of 38.3% in loan impairment charges, down to KES 2.7 billion, helped buffer the effects of increased expenses and margin pressure.
Non-banking subsidiaries, including Investment Banking, Bancassurance, and Leasing, contributed KES 0.6 billion to profitability, showcasing a 56% year-on-year growth. This performance highlights the Group’s ability to leverage its diverse portfolio for enhanced overall financial stability.
In a statement, Gachora highlighted the robust performance of NCBA’s banking operations. “Our banking business delivered a collective profit before tax of KES 11.7 billion during the period. These outcomes are flat year on year largely driven by a tight interest rate environment which has elevated our cost of funds and pressured our profit margins,” he explained. “Despite these challenges, we remain committed to strategically managing our balance sheet and optimizing our financial performance to sustain our growth trajectory.”
NCBA has also been recognized for its customer-centric approach, receiving awards such as Excellence in Customer Experience at the Connected Banking Summit, second place in the KBA Customer Satisfaction Survey, and Best Bank in Customer Experience by the Africa Bank Awards. The Group’s efforts in digital innovation and customer service have further solidified its reputation, with notable initiatives including a waiver of monthly account maintenance fees and the introduction of new features on digital platforms.
The Group’s commitment to financial inclusion is evident through the disbursement of KES 478 billion in digital loans and ongoing investments in financial technologies. With over 60 million customers across Africa, NCBA continues to prioritize accessibility and innovation to meet diverse financial needs.
In addition to its financial achievements, NCBA has advanced its sustainability goals with initiatives such as awarding 169 education scholarships, planting over 175,000 trees, and mobilizing KES 6.5 billion in green and sustainable financing. The Group’s acquisition of AIG Kenya has expanded its footprint in the insurance sector, integrating a well-established business into its portfolio.
Looking ahead, Gachora noted a cautiously optimistic outlook for the latter half of the year. “The economic outlook presents a nuanced blend of optimism and caution,” he said. “We are encouraged by positive trends such as easing inflation and currency stabilization, along with the Government’s commitment to sustainable growth and fiscal discipline.”
NCBA’s strong performance has enabled the Board of Directors to declare an interim dividend of KES 2.25 per ordinary share, further reflecting the Group’s solid financial position and commitment to shareholder value.
