NCBA Group Profit After Tax Surge to KES 9.8 Bn in H1 2024
NCBA Group CEO John Gachora during the unveiling of H1 financial Results 2024
NCBA Group PLC has announced a profit after tax of KES 9.8 billion for the first half of 2024, marking a 5.0 percent increase from KES 9.4 billion reported during the same period in 2023. This growth reflects the Group’s resilient financial performance amid a challenging operating environment.
The Group’s customer deposits rose to KES 529 billion, up 2.4 percent year on year. Total assets grew by 4.3 percent to KES 689 billion, while digital loans disbursed reached KES 478 billion, a 4.0 percent increase compared to the previous year. Operating income was KES 31.4 billion, a 1.1 percent increase, though operating expenses climbed 15.5 percent to KES 16.5 billion. Notably, provision for credit losses saw a significant reduction of 38.3 percent, totaling KES 2.7 billion. Profit before tax remained flat at KES 12.2 billion, with profit after tax rising to KES 9.8 billion.
John Gachora, Group Managing Director, expressed satisfaction with the results, noting, “Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience.” He highlighted the bank’s collective profit before tax of KES 11.7 billion, which experienced flat growth due to a tight interest rate environment affecting cost of funds and profit margins. Gachora reaffirmed the Group’s commitment to managing its balance sheet and optimizing financial performance for sustained growth.
NCBA’s non-banking subsidiaries, including investment banking, bancassurance, and leasing, contributed KES 0.6 billion in profitability, achieving a remarkable 56 percent year-on-year growth. This underscores the strength and versatility of the Group’s brand.
The Group’s strategic focus on customer experience has been recognized with multiple awards, including Excellence in Customer Experience at the Connected Banking Summit, 2nd place in the KBA Customer Satisfaction Survey, and Best Bank in Customer Experience by Africa Bank Awards. NCBA was also ranked 6th in Kenya, 85th in Africa’s most valuable brands, and among the Top 5 most loved banks by women in Kenya.
NCBA has implemented several initiatives to enhance customer service, such as the SME Development Programme in partnership with Strathmore Business School, impacting over 1,500 business owners. Additionally, the bank has maintained its leadership in asset finance with scheme agreements with vehicle dealers like Isuzu, CFAO, Simba, and Inchape. The Group has also waived monthly account maintenance fees for retail banking customers to mitigate economic challenges and attract new clients.
The Group has continued to promote financial inclusion by disbursing KES 478 billion in digital loans, enhancing its digital platforms with features like app investments, instant digital loans, and paybill services. These innovations have empowered over 60 million customers across Africa.
As a leading regional employer, NCBA has contributed to economic development through job creation and digital skills enhancement. The Group has also made strides in sustainability with 169 educational scholarships, planting 175,044 trees, mobilizing KES 6.5 billion in green and sustainable financing, and upskilling 90% of staff through the ‘I Change the Story’ program.
The complete acquisition of AIG Kenya, valued at KES 309 billion, has bolstered NCBA’s position in the financial services industry by integrating a well-established insurance business, providing customers with comprehensive financial products under one roof.
Looking ahead, Gachora remarked, “The economic outlook for the latter half of the year presents a nuanced blend of optimism and caution.” He noted positive trends such as easing inflation to 4.6 percent and currency stabilization, and expressed encouragement from the government’s commitment to sustainable growth, fiscal discipline, and fostering a favorable financial environment.
In light of the Group’s strong performance, the Board of Directors has approved an interim dividend of KES 2.25 per ordinary share.
