NCBA Group has posted a profit after tax of KES 9.8 billion in its first half of 2024 financial results which is a 5.0 per cent increase compared to KES 9.4 billion reported during a similar period in 2023.
NCBA demonstrated strong financial fundamentals recording positive operating income of KES 31 billion and a decline in loan impairment charges of 38.3 per cent year on year.
John Gachora, Group Managing Director of NCBA, in a statement said, “Our banking business across the Group delivered a collective PBT of KES 11.7 billion in the period. These outcomes are flat year on year largely driven by a tight interest rate environment which has elevated our cost of funds and pressured our profit margins. Despite these challenges, we remain committed to strategically managing our balance sheet and optimizing our financial performance to sustain our growth trajectory.”
NCBA Group’s non-banking subsidiaries, including Investment Banking, Bancassurance and Leasing contributed KES 0.6 billion in profitability and saw a 56% year-on-year growth.
NCBA Group also implemented notable initiatives such as the SME Development Programme partnership with Strathmore Business School which has impacted over 1500 business owners since inception, asset financing schemes with firms such as Isuzu, CFAO, Simba and Inchape which helped sustain NCBA’s Asset Finance market leadership at 37% and the recent waiver of monthly account maintenance fees for retail banking customers to cushion economic shocks and drive customer acquisition.
The Group continued to accelerate and promote financial inclusion across the region by disbursing KES 478 billion worth of Digital Loans. This accompanied by innovation on digital platforms services such as the ability to invest on the bank app, instant digital loans and additional pay bill features ensured that NCBA empowered over 60 million customers across Africa and enabled them achieve their financial goals.
The 100% acquisition of AIG Kenya further strengthened NCBA’s position in the financial services industry by tapping into a sizeable KES 309 billion insurance industry. This strategic move embedded an over 50-year-old well known insurance business to enable customers conveniently access all their financial products under one roof.