NCBA Group reports Sh15.1b profit after tax for first nine months

NCBA Group posted a net profit of Sh15.1 billion in its quarter three financial results compared to Sh14.6 billion earned in the corresponding period last year.

John Gachora (pictured), NCBA Group Managing Director said that the underlying trends of their profit and loss statement remained solid despite the exceedingly volatile operating environment which has impacted their cost of funding and put pressure on their net interest income. “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 per cent, and improved asset quality,” he said.  Despite the profit, the bank reported a 1 per cent decline in its profit before tax to stand at Sh18.4 billion from Sh18.6 billion reported during a similar period in 2023.

According to the lender, the Kenya bank business remained a key driver contributing 83 per cent of the group’s net profit with subsidiary contribution and non-banking subsidiary representing 13 per cent and 4 per cent of the net profit respectively.

The Group`s focus on enhancing subsidiary contribution saw regional businesses in Uganda, Tanzania and Rwanda deliver a combined KES 2.4 billion profit 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’s net profit.

Similarly, NCBA’s operating income experienced a 0.6 per cent surge jumping to Sh46.9 billion from Sh46.7 billion as their operating expenses increased by 1.6 per cent to stand at Sh28.6 billion from Sh28.1 during the same period last year.

In the period under review, the bank offered affordable solutions such as monthly maintenance fees waiver complemented by financial literacy engagements that have helped cushion customers against economic shocks.