NCBA Bank Kenya witnessed a 10.5% rise in total assets in Q1 2024, jumping from the recorded Sh 628.83 Bn in Q1 2023 to Sh 694.87 bn. This was reinforced by a Profit after Tax increase of 4.65%, reaching Ksh 5.30 billion compared to Ksh 5.07 billion in the same period last year.
Customer loans climbed by 11.61% to Sh 320.51 billion, up from Sh 287.15 billion in Q1 2023. Customer deposits mirrored this growth pattern, with a 9.67% increase to Sh 548.07 billion from Sh 499.74 billion in the previous year’s first quarter.
Shareholder equity witnessed a noteworthy increase as well. Shareholders’ Funds grew by 12.37% to Sh 98.78 billion, compared to Sh 87.91 billion in Q1 2023. This expansion strengthens NCBA’s capital base, positioning the bank for strategic future investments and growth.
While Net Interest Income experienced a slight decline of 1.20%, falling to Sh 8.27 billion from Sh 8.37 billion in Q1 2023, the bank managed to achieve positive results in other areas. Non-Interest Income grew by 7.38% to Sh 7.71 billion from Sh 7.18 billion in the same period last year, indicating NCBA’s successful strategy of diversifying its revenue streams beyond traditional interest income on loans. Overall, the bank’s total revenue increased by 2.8% to Sh 15.98 billion from Sh 15.55 billion in Q1 2023.
NCBA demonstrated effective management of its operating expenses. Total Operating Expenses witnessed a moderate rise of 3.1%, reaching Sh 9.44 billion from Sh 9.15 billion in Q1 2023. This controlled growth in expenses helped maintain profitability. Profit after Tax rose by 4.65% to Sh 5.30 billion, compared to Sh 5.07 billion in the first quarter of 2023.
The Cost to Income Ratio, a profitability metric, did see a slight increase to 50.63% from 46.3% in Q1 2023. However, this ratio remains within a healthy range, indicating that NCBA is efficiently converting its income into profit.
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NCBA’s financial results also revealed a minor concern in the form of a rise in gross non-performing loans. These are essentially loans where borrowers have fallen behind on repayments for a specific period, typically exceeding 90 days. The amount of such loans increased from Sh 39.75 billion in Q1 2023 to Sh 40.17 billion in Q1 2024.
On the capital front, the number of issued shares remained constant at 1.65 billion, maintaining the trend observed over the past five years. The book value per share, however, witnessed a significant rise, reaching Sh 59.96 from Sh 53.36 in Q1 2023. This increase reflects the substantial growth in shareholder equity.
The ncba bank share price rose to Sh 43.8 from Sh 36.7 in Q1 2023, resulting in a Price to Book Ratio of 0.73, compared to 0.69 in the same period last year.