NCBA Group has recorded a 20.3 per cent jump in its net profit to Ksh9.3 billion for the half-year period ended June 30 2023 compared to Ksh7.8 billion reported in a similar period last year.
The growth was driven by an increase in operating income and a decline in loan impairment charges by 21 per cent.
The performance has seen the board of directors recommend an interim dividend declaration of Ksh1.75 per share.
“These strong operating results are attributable to consistent focus on our strategic priorities,” said NCBA Group Managing Director (MD) John Gachora.
Gachora further noted that the lender has experienced continued growth in its core business in the country even as it boasts of reaching 24 counties in Kenya with a total of 90 branches and plans of opening more in Migori, Ruaka and Wote.
“Our Retail and Corporate Banking customer deposits have grown on the back of building a bigger and smarter network and offering superior customer experience.,” he added.
The group’s subsidiaries in Uganda, Tanzania and Rwanda also buoyed its performance for H1 2023 as they collectively posted a Ksh1.4 billion profit before tax from a Ksh178 million loss they posted in a similar period last year.
During the review period, operating expenses surged 24 per cent year on year (YoY) on the back of inflationary pressures and continued investment in the lender’s current 5-year strategy which will end in 2024.
The lender’s assets grew 9 per cent YoY to Ksh660 billion.
Further, customer deposits closed at Ksh517 billion recording a 10 per cent increase.
NCBA Group disbursed KES 457 billion in digital loans, a 35 per cent increase year on year. NCBA runs M-Shwari in partnership with Safaricom, allowing customers to access credit on their phones.
Moreover, operating income for the review period shot up 7 per cent to Ksh31 billion from Ksh28.9 billion posted in the half-year period ended June 2022.
Total Shareholders’ Funds grew to Ksh88.3 billion from Ksh80.2 billion posted in H1 2022.