NCBA Bank Group disbursed KES 751 billion over its digital products, an 8 per cent increase from the same period last year and posted a profit after tax of KES 15.1 billion in its Q3 2024 financial results.
The firm posted an operating income of KES 46.9 billion and operating expenses of KES 28.6 billion and a profit before tax of KES 18.4 billion and profit after tax of KES 15.1 billion.
According to NCBA Group Managing Director, John Gachora, “Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33 percent) and improved asset quality.”
The firm also acknowledged solutions such as the monthly maintainance fees waiver and financial literacy engagements helped cushion customers against economic shocks. It’s mobile lending solutions in partnership with Telcos such as M-SHWARI and the Group`s investment in digital financial inclusion services such as LOOP has enabled disbursement of KES 751 billion to its more than 60 million customers across Sub-Saharan Africa.
M-Shwari loans and savings product created in partnership with M-Pesa and NCBA allows users to save and borrow money through their mobile phones from anyone in the region.
The Group`s branch footprint reached 116 across the region with extended Kenya presence in Homabay, Kapsabet, Githunguri, Kitui, Nyahururu and Kerugoya while Rwanda opened new locations in Remera and Gisozi. The bigger network has continued growing NCBA’s customer base and ensured improved access to superior financial services.
“We are pleased to announce continued strong performance in the third quarter of 2024. The underlying trends of our P&L remained solid against an exceedingly volatile operating environment which has impacted our cost of funding and put pressure on our Net Interest Income. However 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 percent) and improved asset quality,” Gachora concluded.
In August, NCBA Group announced it disbursed KES 478 billion in Digital Loans due 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 firm also this year acquired 100% of AIG Kenya to further strengthen its 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.