NCBA Group PLC has reported a profit after tax of Ksh 15.1 billion for the third quarter of 2024, a 3.0% increase year-on-year. The profit growth was driven by a 22% increase in interest income to Ksh 57.43 billion, growth in non-interest income to Ksh 21.82 billion, and an uptick in total operating income to Ksh 46.9 billion.
Commenting on the results, NCBA Group Managing Director, John Gachora remarked, “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.” he added.
Total assets stood at Ksh 679 billion, while the loan portfolio experienced a slight decline, closing at Ksh 303.45 billion compared to Ksh 308.7 billion in Q3 2023. Gross non-performing loans reduced from Ksh 43.01 billion to Ksh 41.15 billion.
Similarly, customer deposits dropped to Ksh 515.11 billion from Ksh 548.13 billion.
On the cost side, operating expenses increased by 1.6%, reaching Ksh 28.6 billion. The provision for credit losses fell sharply by 32.8% to Ksh 4.1 billion. NCBA Group also disbursed Ksh 751 billion in digital loans, an 8% year-on-year increase, reaching over 60 million customers across Sub-Saharan Africa.
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Kenya remained the Group’s primary market, contributing 83% of the Group’s Ksh 18.4 billion PBT. Regional operations in Uganda, Tanzania, and Rwanda generated KES 2.4 billion, representing 13% of the Group’s pre-tax profit. Non-banking subsidiaries, including NCBA Investment Bank, Bancassurance, Leasing, and NCBA Insurance (formerly AIG Kenya), collectively contributed 4%.
Additionally, NCBA Kenya opened new branches in Homabay, Kapsabet, Githunguri, Kitui, Nyahururu, and Kerugoya, while NCBA Rwanda saw new locations in Remera and Gisozi. NCBA Group currently has 116 branches operating in East Africa.
NCBA also introduced a monthly maintenance fee waiver and financial literacy programs, which have enabled disbursement of Ksh 751 billion to its more than 60 million customers across Sub-Saharan Africa.