NCBA Group full year profit rises to Sh10.2billion

NAIROBI, Kenya March 24-NCBA Group has more than doubled its full-year net profit for the year ended December 2021 from Sh4.6 billion in 2020 to Sh10.2 billion, a 121 per cent increase.

The growth in profitability was attributed to an increase in operating income of Sh2.7billion and a significant decline in loan impairment charges of Sh7.7billion.

“I a, extremely proud of the financial results that the Group delivered in 2021. While there is still much more to do it is clear that our merger is paying dividends,” said John Gachora, Group Managing Director, NCBA Group.

The lender’s asset base rose to Sh591.1billion, 12 per cent up year on year.

Customer deposits increased to Sh469.9billion from Sh421.5 billion.

Similar to other banks that set high loan-loss provisions in 2020, NCBA slashed its loan-loss provision by almost half from Sh20.4 billion to Sh12.7 billion, due to reduced lending activities.

NCBA has continued to see a loan book attrition with the net advances falling to Sh244 billion from Sh248.5 billion.

In 2021, NCBA disbursed Sh584 billion worth of digital loans, a sum 34.6 per cent greater than Sh434 billion digital loans disbursements in 2020.

The lender’s non-performing loans coverage ratio increased to 73.6 per cent, from 60.9 per cent in the same period last year.

Subsequent to the profit rise, the NCBA board has recommended the payment of a Sh2.25 final dividend or a cumulative Ksh.3.7 billion payout.