NCBA Group PLC has reported a net profit of KES 9.8 billion for the first half of 2024. This marks a 5% increase from KES 9.4 billion in the same period last year.
Key Financial Highlights:
- Customer Deposits: KES 529 billion, up 2.4% year-on-year.
- Total Assets: KES 689 billion, up 4.3% year-on-year.
- Digital Loans: KES 478 billion disbursed, a 4% increase year-on-year.
- Operating Income: KES 31.4 billion, up 1.1% year-on-year.
- Operating Expenses: KES 16.5 billion, up 15.5% year-on-year.
- Credit Loss Provisions: KES 2.7 billion, down 38.3% year-on-year.
- Profit Before Tax: KES 12.2 billion, flat growth year-on-year.
- Profit After Tax: KES 9.8 billion, up 5% year-on-year.
NCBA’s financial performance was bolstered by strong fundamentals and a strategic focus on five pillars. These pillars include enhancing customer experience, scaling retail banking, deepening corporate banking and asset finance leadership, driving digital transformation, and fostering a high-performance culture.
John Gachora, Group Managing Director , NCBA expressed satisfaction with the results despite challenges such as a tight interest rate environment. This is because of increased costs and pressured profit margins. The Group’s banking operations contributed KES 11.7 billion in profit before tax, while non-banking subsidiaries, including Investment Banking, Bancassurance, and Leasing, added KES 0.6 billion, showing a 56% year-on-year growth.
Read how NCBA Waived Monthly Charges for Retail Customers
NCBA focus on customer experience was recognized with several awards, including Excellence in Customer Experience at the Connected Banking Summit and Best Bank in Customer Experience by Africa Bank Awards. The Group also continued to promote financial inclusion, disbursing KES 478 billion in digital loans and enhancing digital services for its 60 million customers across Africa.
The acquisition of AIG Kenya further strengthened NCBA’s position, allowing it to tap into the KES 309 billion insurance industry.
Looking ahead, Gachora noted a cautious optimism for the second half of the year, with positive economic indicators such as easing inflation and currency stabilization. The Board of Directors has approved an interim dividend of KES 2.25 per ordinary share.
