NCBA Group PLC has reported a profit after tax of KES 15.1 billion for the third quarter of 2024, marking a 3 percent increase from KES 14.6 billion in the same period last year. Despite a challenging economic environment, the Group’s financial results underscore its resilience and continued growth across key business segments.
NCBA Group’s total assets remained steady at KES 679 billion year-on-year. The Group’s digital lending operations continued to thrive, disbursing KES 751 billion in loans—a notable 8 percent increase compared to Q3 2023. Operating income rose marginally by 0.6 percent to KES 46.9 billion, while operating expenses increased by 1.6 percent to KES 28.6 billion. Notably, the provision for credit losses fell sharply by 32.8 percent to KES 4.1 billion, reflecting improved asset quality and credit management.
Profit before tax stood at KES 18.4 billion, a slight decline of 1 percent year-on-year. However, after-tax profit benefited from lower impairment charges, posting a 3 percent rise year-on-year.
John Gachora, NCBA Group Managing Director, expressed satisfaction with the Group’s performance amidst a volatile operating environment. “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,” he said.
Gachora highlighted the Group’s success in reducing impairment charges and its focus on diversifying revenue streams. “Our fee-based revenue continues to grow, reflecting the growing diversity of our earnings mix. Strong credit management enabled stability in lending outcomes, bucking industry trends,” he added.
The Kenya banking business remained the Group’s mainstay, contributing 83 percent of the KES 18.4 billion profit before tax. Regional subsidiaries in Uganda, Tanzania, and Rwanda collectively generated KES 2.4 billion, accounting for 13 percent of Group PBT. Non-banking subsidiaries, including NCBA Investment Bank, Bancassurance, Leasing, and NCBA Insurance, contributed the remaining 4 percent.
NCBA’s focus on digital inclusion has seen the Group disburse over KES 751 billion in digital loans to more than 60 million customers across Sub-Saharan Africa. Initiatives like waiving monthly maintenance fees and financial literacy programs have cushioned customers against economic challenges.
The Group’s branch network also expanded, with new branches in Kenya and Rwanda enhancing customer access. NCBA now operates 116 branches regionally, further strengthening its footprint and customer base.
NCBA’s innovative approach has earned the Group several accolades, including:
Finalist in the Innovations Category at the Customer Experience Africa Awards.
Best Banking Experience by KENCTAD.
SME Financier of the Year by the International Finance Corporation.
On sustainability, NCBA was recognized by the Kenya Green Building Society for its sustainable finance initiatives.
NCBA’s “Change The Story” sustainability program continues to make significant strides. The Group has planted over 220,000 trees, trained 1,000 farmers on environmental conservation, and created over 100 jobs, impacting more than 5,000 livelihoods. It has also supported nearly 6,000 women and youth through scholarships and business innovation programs.
Looking ahead, Gachora expressed optimism about the stabilizing economic environment. “The global and local operating environments are stabilizing, with positive movements on inflation, currency exchange rates, and Central Bank rates. We are poised for sustainable growth on the back of improved macro conditions,” he said during the recent NCBA Economic Forum in Nairobi.
NCBA remains committed to driving growth and innovation across its operations while delivering value to its stakeholders.