NCBA Group has reported robust financial results for the first quarter of 2024, showcasing continued growth and resilience despite a challenging operating environment. The group’s positive operating income of KES 16 billion and a significant 30.9% year-on-year decline in loan impairment charges have been pivotal in achieving these results.
John Gachora, Group Managing Director of NCBA, expressed his satisfaction with the performance, stating, “We are pleased to report strong financial results for the first quarter of 2024. 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.”
Regional and Non-Banking Subsidiaries’ Contribution
NCBA’s regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined profit of KES 705 million, representing 11% of the group’s profitability. Additionally, the non-banking subsidiaries, including the Investment Bank, Bancassurance, and Leasing, reported positive operating profits, contributing 4.9% to the Group’s overall profitability.
Brand Recognition and Market Leadership
NCBA’s commitment to becoming a distinguished brand has been recognised by Brand Finance, which named it Kenya’s second fastest-growing brand in 2024, with a 44% increase, ranking it sixth among the Top 25 Most Valuable Brands in Kenya. “We have maintained asset finance market share leadership at 35% 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,” said Gachora.
Supporting SME Growth
Aligned with the government’s commitment to support small businesses, which account for 33.8% of the national output, NCBA’s Enterprise Development Programme, in partnership with Strathmore Business School, has significantly boosted SME growth. Business owners underwent a 16-week course designed to equip them with the tools and skills necessary to identify and seize opportunities, foster innovation, and unlock their business potential.
Promoting Financial Inclusion and Digital Transformation
NCBA has been a pioneer in promoting financial inclusion across Africa, serving over 60 million customers. The group recorded digital loan disbursements of KES 232 billion through platforms such as LOOP, Mshwari, and Fuliza, empowering customers to meet their daily financial needs and cushion them against economic challenges.
Sustainability and Community Impact
Under its “Change The Story” platform, NCBA is on track to realise its 15 Sustainability Commitments. The group’s notable partnerships have had a significant impact, including:
- Providing education scholarships to over 100 students
- Investing KES 60 million in inclusive regional golf tournaments, benefiting 10,000 golfers
- Funding nurseries for 400,000 seedlings to support tree growing
- Facilitating green financing and women’s economic empowerment with a USD 50 million facility
- Installing an EV charging station in Rwanda to promote electric vehicle adoption
Outlook and Future Commitments
Looking ahead, Gachora acknowledged the challenges in the business environment but remained optimistic about the positive outcomes from ongoing public and private sector economic policy interventions. “We remain committed to deliver against the Group’s strategic cycle now in its final year, which will drive sustainable growth and create value for shareholders,” said Mr. Gachora.
With its strategic initiatives and robust financial performance, NCBA continues to position itself as a leader in the financial services sector, dedicated to driving growth and making a positive impact across the region.