NCBA Group PLC has reported a 5% year-over-year increase in profit after tax to KES 5.3 billion for the first quarter of 2024, driven by strong growth in operating income of KES 16 billion, a 2.8% increase, and a 30.9% decline in loan impairment charges to KES 1.4 billion.
The bank’s impressive performance comes amid a challenging operating environment, underscoring the resilience of its diversified business model. NCBA’s digital lending arm played a significant role, disbursing KES 232 billion in loans, a 3.9% increase from the previous year.
“Despite a challenging operating environment, our diversified business model continued to demonstrate growth and resilience with strong contribution from our digital business and stable performance from our regional banking subsidiaries,” said John Gachora, Group Managing Director of NCBA.
The bank’s regional subsidiaries in Uganda, Tanzania, and Rwanda contributed KES 705 million, or 11% of the group’s profitability, while non-banking subsidiaries, including investment banking, insurance, and leasing, contributed 4.9% to the group’s earnings.
NCBA’s total assets grew by 10.5% year-over-year to KES 695 billion, and customer deposits increased by 9.7% to KES 548 billion, indicating the bank’s ability to attract and serve more corporate and retail customers.
The bank’s focus on customer experience and brand building has paid off, with the bank recognized as Kenya’s second fastest-growing brand by Brand Finance, a leading brand valuation consultancy. The bank’s brand value increased by 44% in 2024, ranking it sixth among the Top 25 Most Valuable Brands in Kenya.
“We have maintained asset finance market share leadership at 35% and our growing deposit base indicates the ability to attract and serve more corporate and retail customers. Our regional branch expansion now reaching a footprint of 114 will ensure we offer superior experience and convenience through a bigger network,” Gachora added.
In line with the Kenyan government’s commitment to supporting small businesses, NCBA partnered with Strathmore Business School to provide a 16-week training program for SME owners, equipping them with the tools and skills needed to identify and seize opportunities, foster innovation, and unlock their business potential.
NCBA’s commitment to sustainability and corporate social responsibility has also been evident through various initiatives, including education scholarships for over 100 students, investing KES 60 million in inclusive regional golf tournaments impacting 10,000 golfers, funding nurseries for 400,000 tree seedlings, a $50 million green financing facility for women’s economic empowerment, and the installation of an EV charging station in Rwanda.
Looking ahead, Gachora expressed optimism about the potential for positive economic policy interventions from both the public and private sectors to benefit the challenging business environment.
