NCBA makes Sh. 3.41 billion net profit in first three months of 2022

NCBA Group PLC has recorded a net profit of Sh. 3.41 billion for the first three months of the year ended March 31, 2022.

This profit growth represented an increase of 20 per cent compared to the Sh 2.84 billion net profit the bank posted during a similar period in 2021.

In the period under review, assets grew to Sh. 587.4 billion customer deposits closed at Sh. 465.5 billion.

NCBA Group disbursed Sh. 163.4 billion in digital loans, which was a 26 per cent increase year on year. At the same time, operating income increased to Sh. 13.2 billion, while provision for credit losses for the quarter was Sh. 2.5 billion.

John Gachora, Group Managing Director, said that the profit growth reflects strong underlying performance across all areas of the business and an improving economy.

“Our financial results this quarter, are a strong reflection that the post-merger foundation that we have built is very solid and is unlocking growth opportunities while delivering operational efficiencies,” said Gachora.

Net interest income recorded an 8 per cent increase year on year due to growth in interest income from treasury investments. The overall effect was an operating income in the period that closed at Sh. 13.2 billion, representing 11 per cent growth against the prior year’s performance.

In the first quarter of this year, NCBA Group further improved the NPL coverage ratio to 72.6 per cent from 65.0 per cent in the same period last year.

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Additionally, NCBA Group’s focus on maintaining high credit quality as well as the concerted recovery efforts, particularly in the digital lending business has begun to bear fruit in stabilizing the credit portfolio.