NCBA reports Sh3.41 billion profit after tax for Q1

NAIROBI, Kenya, May 4 – NCBA Group PLC has recorded a profit after tax of Sh3.41 billion for the quarter ending March 31, 2022, an increase of 20 percent compared to the Sh2.84 billion posted during a similar period in 2021.

Commenting on the results, John Gachora, Group Managing Director, NCBA Group said the results reflect 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.

Over the same period, the total assets increased to Sh587 billion, representing strong growth of 8 percent year on year.

Customer deposits also increased by 7 percent year on year fuelled by strong business development efforts.

The Group gross loans stood at Sh285.2 billion, representing 2 percent year-on-year growth in all banking subsidiaries.

Digital loan disbursements, however, increased significantly by 26 percent to Sh163.4 billion from Sh129.9 billion during the same period a year ago.

This is in line with NCBA Group’s digitization agenda and its commitment to supporting small businesses and individual customers during this period.

NCBA Group’s non-performing loan ratio stands at 15.8percent, largely in line with industry-wide levels.

In Q1 2022, NCBA Group further improved the NPL coverage ratio to 72.6per cent from 65.0 per cent in the same period last year.

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

NCBA Group’s capital and liquidity levels remain very strong, with liquidity at 63percent and Total capital / Total risk weighted assets at 17.9percent.