NCBA books a net profit of Ksh 5.3B in first quarter

NCBA Group profit after tax has risen by 4.7pc in the first three months of this year to Ksh 5.3 billion from Ksh 5.1 billion recorded over the same period last year.

In a year to March 31, the lender’s profit surge was lifted by higher total operating income which grew by 2.3pc to reach Ksh 16 billion from Ksh 15.5 billion.

“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, NCBA.

According to Gachora, regional subsidiaries in Uganda, Tanzania and Rwanda delivered a combine profit of Ksh 705 million to account for 11pc of group profitability.

On the other hand, non-banking subsidiaries including the investment bank, bancassurance and leasing all reported positive operating profit and contributed 4.9pc of the group profits.

The bank’s net interest income decline from Ksh 8.3 billion to Ksh 8.4 billion while total non-interest income rose to Ksh 7.7 billion from Ksh 7.2 billion over the same period.

NCBA also reported a growth in its loan book to Ksh 320.5 billion from Ksh 287.2 billion with loans disbursed through digital channels such as LOOP, Mshwari and Fuliza partner platforms with KCB and Safaricom amounting to Ksh Ksh 232 billion. However, the bank managed to trim its loan loss provision by 30.9pc to Ksh 1.4 billion.

“We have maintained asset finance market share leadership at 35pc 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,” added Gachora.

During the period, deposits surged by 9.7pc from Ksh 499.7 billion to Ksh 548.1 billion.