NCBA Group Posts Ksh.21.5 billion in Profit for FY 2023

NCBA Group has posted an after-tax profit of Ksh.21.5 billion in its Full Year 2023 results, representing a 56% uptick from Ksh.13.8 billion reported during a similar period in 2022.

Key Highlights on NCBA Financials

  • Customer deposits closed at Ksh.579 billion, 15.3% up year on year.
  • Assets grew to Ksh.735 billion, 18.6% up year on year.
  • NCBA disbursed Ksh.930 billion in digital loans, 27.5% increase year on year.
  • Operating income of Ksh.63.7 billion, 4.5% up year on year
  • Provision for credit losses was Ksh.9.2 billion, 29.9% down year on year.
  • Profit before tax of Ksh.25.5 billion, 13.3% up year on year.
  • Profit after tax of Ksh.21.5 billion, 55.7% up year on year

Operating expenses closed at 19% up year on year driven by inflationary pressures and continued investment in the current strategic priorities.

What NCBA Group GMD Said on Financial Results

“The Business has sustained growth momentum in line with our five-year strategic plan, which has positively enhanced shareholder value while supporting customers amidst a challenging macro-economic environment,” said NCBA Group Managing Director, John Gachora.

“Our regional subsidiaries (Tanzania, Rwanda and Uganda) collectively delivered a profit before tax of Ksh.3.0 billion, a notable improvement from the loss of Ksh.308 million posted in Full Year 2022” added Gachora.

These outstanding results were driven by the Group’s turnaround strategy in Tanzania through recalibration of the business model and a rightsizing of the operating models in Uganda and Rwanda to accelerate growth.

The Group’s Asset Finance market share and leadership position reached 34% while retail asset finance disbursements increased by 18% enabled by stronger relationships with distinctive strategic partnerships.

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Access to digital credit remained a key focus area to help customers manage their financial well-being.

Digital lending for the period reached Ksh.930 billion for NCBA`s over 60 million customers across Africa while mobile transaction volumes grew 37% year on year.

More than 3,000 students and teachers were impacted through education programs, over 344,000 trees were planted, 7,000 golfers participated in driving inclusive regional sports and Electric Vehicle charging stations were installed.

NCBA Enters Deal to Unlock $50 Million

In the period under review, NCBA committed to mobilize Ksh.30 billion of Green & Sustainable Financing.

The bank joined forces with Proparco a subsidiary of the AFD Group to unlock a $50 million facility.

The funding is targeted towards fostering sustainable economic development and to promote diversity, equity, and inclusion.

NCBA made its iintention clear in under review period to acquire 100% shares of AIG Kenya Insurance Company Limited subject to regulatory approval.

The Group`s strong performance enabled the Board of Directors to recommend a final dividend declaration of Ksh.3.00 per share bringing the total dividend for the year to Ksh.4.75 per share.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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