NCBA Group’s profit after tax for Q’3 2024 grew by 3.1% to KES 15.1 billion, up from KES 14.6 billion during the same period in 2023. Efforts to enhance contributions from subsidiaries yielded positive results, with regional operations in Uganda, Tanzania, and Rwanda generating a combined profit of KES 2.4 billion, equivalent to 13.0% of the Group’s PBT.
Non-banking subsidiaries, including the Investment Bank, Bancassurance, Leasing, and NCBA Insurance (formerly AIG Kenya), contributed 4.0% of the Group’s PBT, all achieving positive profitability.
Commenting on the performance, NCBA Group Managing Director, John Gachora, stated:
“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.”
He also highlighted the Group’s growing fee-based revenue, reflecting a more diverse earnings mix, as well as strong credit management practices that led to lower impairment charges (down 33.0%) and improved asset quality.
Key take-outs from the results are:
Total Assets: KES 678.8 billion, remained unchanged year on year.
Digital Loans Disbursed: KES 751.0 billion, an 8.0% year-on-year increase.
Operating Income: KES 46.9 billion, up 0.6% year-on-year.
Operating Expenses: KES 28.6 billion, up 1.6% year-on-year.
Provision for Credit Losses: KES 4.1 billion, down 32.8% year-on-year.
Profit Before Tax: KES 18.4 billion, a 0.9% decline year-on-year.
Profit After Tax: KES 15.1 billion, up 3.1% year-on-year.
The Group attributes its resilience to affordable solutions, such as waived monthly maintenance fees and financial literacy initiatives, which have helped shield customers from economic shocks. Additionally, its mobile lending partnerships with telcos have advanced digital financial inclusion, enabling the disbursement of KES 751.0 billion to over 60.0 million customers across Sub-Saharan Africa.
