NCBA Group PLC has posted a profit after tax of KES 15.1 billion in its Q3 2024 financial results which is a 3.0 per cent increase compared to KES 14.6 billion reported during a similar period in 2023.
Key Highlights
- Total Assets closed at KES 679 billion, remaining flat year on year.
- Digital Loans disbursed were KES 751 billion, 8 per cent increase year on year.
- Operating income of KES 46.9 billion,0.6 per cent up year on year.
- Operating expenses of KES 28.6 billion,1.6 per cent up year on year.
- Provision for credit losses was KES 4.1 billion, 32.8 per cent down year on year.
- Profit before tax of KES 18.4 billion, 1.0 per cent down year on year.
- Profit after tax of KES 15.1 billion, 3.0 per cent up year on year.
Commenting on the results, NCBA Group Managing Director, John Gachora remarked, “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. However our fee based revenue continues to grow reflecting the growing diversity of our earnings mix. Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33 percent) and improved asset quality.”
The Kenya Bank business remained a key driver contributing 83 per cent of the Group’s KES 18.4 billion PBT. The Group`s focus on enhancing subsidiary contribution saw regional businesses in Uganda, Tanzania and Rwanda deliver a combined KES 2.4 billion profit representing 13 per cent of the Group PBT while all non-banking subsidiaries including the Investment Bank, Bancassurance, Leasing and NCBA Insurance (formerly AIG Kenya) closed with positive profitability contributing 4 per cent of the Group PBT.
Affordable solutions such as the monthly maintainance fees waiver complimented by financial literacy engagements have helped cushion customers against economic shocks. Through organized mobile lending solutions in partnership with Telcos, the Group`s investment in digital financial inclusion services has enabled disbursement of KES 751 billion to its more than 60 million customers across Sub-Saharan Africa.
Business Highlights
NCBA Brand has strengthened significantly, earning remarkable regional and global recognition in the financial industry. The Group`s commitment to customers has garnered top honors including, Finalist in the Innovations Category by Customer Experience Africa Awards, Best Overall CX Solution awarded by VUKA Group, Best Banking Experience by KENCTAD, and AI Innovations shaping tomorrow’s CX by XEBO.AI. On Sustainability, the Group was recognized for its work in Sustainable Finance by the Kenya Green Building Society while on business lending solutions NCBA was named SME Financier of the Year by the International Finance Corporation at the Global SME Finance Forum held in Brazil.
The Group`s branch footprint reached 116 across the region with extended Kenya presence in Homabay, Kapsabet, Githunguri, Kitui, Nyahururu and Kerugoya while Rwanda opened new locations in Remera and Gisozi. The bigger network has continued growing NCBA’s customer base and ensured improved access to superior financial services.
NCBA is making progress on its Change The Story 15 Sustainability Commitments. Investment in community initiatives in collaboration with multiple partners has resulted in planting 220,000+ trees, training nearly 1,000 farmers on environmental conservation and creating jobs for 100+, positively impacting over 5,000 livelihoods. 500+ staff have been engaged in the “I Change the Story” training program while close to 6,000 women and youth have been empowered through education scholarships, mentorship and business innovation skills development. Additionally, the Group has continued to foster regional sports development through the NCBA Golf Series and partnerships with the Kenya Golf Union on tournaments, plus the Junior Golf Foundation impacting 7,000+ players.
Looking Forward
At the recent NCBA Economic Forum held in Nairobi, Mr. Gachora remarked, “The Global and Local operating environments are stabilizing as indicated by positive movements on inflation, currency exchange rates and Central Bank Rates.”
“Going forward, with most of the key economic sectors and sub-sectors already back to their long-term-average growth rates, the role of the Government and Markets will be crucial to sustaining growth as well as enabling households and business enterprises to build buffers that will deal with future shocks. As NCBA, we are poised for sustainable growth on the back of improved macro conditions,” added Mr. Gachora.
