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NCBA Group has announced its impressive financial results for the first quarter of 2023. The Group reported a significant increase in profitability, driven by growth in operating income and a decline in loan impairment charges.
These results demonstrate the company’s strategic focus, commitment to customer experience, and expansion efforts across the region. Let’s take a closer look at the key highlights and achievements of NCBA Group in Q1 2023.
Profitability and Financial Performance
NCBA Group PLC achieved a pre-tax profit of KES 6.4 billion in Q1 2023, representing a remarkable 32% increase compared to the same period last year.
The Group’s profit after tax reached KES 5.1 billion, reflecting a substantial growth of 49% year-on-year. These impressive figures are a testament to NCBA’s effective management of credit risk and its ability to adapt to challenging macroeconomic conditions.
Key Highlights
- Robust Asset Growth: NCBA Group witnessed a 7% increase in assets, reaching KES 629 billion year-on-year, indicating the Group’s strong financial position and stability.
- Growing Customer Deposits: The Group recorded a 7% growth in customer deposits, closing at KES 500 billion. This highlights NCBA’s success in attracting and retaining customers through its superior banking services.
- Digital Loan Disbursement: NCBA Group disbursed KES 223 billion in digital loans, marking an impressive 37% increase compared to the previous year. This underscores the Group’s commitment to leveraging technology and providing accessible financial solutions to its customers.
- Increased Operating Income: NCBA achieved an operating income of KES 15.5 billion, showcasing an 18% growth year-on-year. This growth is a result of the Group’s focus on strategic priorities and the expansion of its customer base.
- Enhanced Profitability: The Group achieved an operating profit before loan loss provisions of KES 8.3 billion, representing a solid 10% increase year-on-year. Additionally, the provision for credit losses decreased by 23% to KES 2.0 billion, further contributing to the overall profitability of NCBA.
Strategic Priorities and Expansion Efforts
NCBA Group remains committed to its strategic priorities, which include becoming a distinguished brand known for exceptional customer experience, expanding its retail banking services, strengthening its position in corporate banking and asset finance, driving digital transformation, and fostering a high-performance culture.
The Group’s regional footprint across five key markets in Africa, including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast, has expanded, allowing NCBA to cater to a wider customer base and diversify its revenue streams.
The regional subsidiaries have positively contributed to the Group’s growth, reflecting the success of the turnaround efforts implemented in 2022.
NCBA’s continuous branch expansion has extended its coverage to 26 counties in Kenya, with a target of reaching 36 counties by the end of 2023. This expansion not only facilitates greater customer access but also generates job opportunities across the regions in which NCBA operates.
Commitment to Innovation and Social Responsibility
NCBA Group is at the forefront of innovative financing solutions, such as the affordable housing initiative, offering 105% home financing at a competitive interest rate of 9.5% with extended repayment periods. This aligns with the Government’s commitment to address affordable housing needs and improve the cost of living for citizens.
Through partnerships with companies like Delux Motors and D.Light Ltd, NCBA is also providing unique financing solutions in the growing motor industry, focusing on sustainable energy-based products.
The Group’s digital banking business has been instrumental in servicing over 60 million customers across Africa, offering mobile lending solutions through partnerships with telecommunications companies.
In Q1 2023, NCBA disbursed KES 223 billion in digital loans, further solidifying its position as the leading digital banking solutions provider in the region.
Moreover, NCBA Group is dedicated to social progress and environmental sustainability. The company’s education sponsorship initiative has benefited over 100 students, and its “Change The Story” program has successfully planted over 7 million trees, aligning with the government’s target of planting 15 billion trees in the next decade.
Additionally, NCBA’s investment in the sport of Golf through the NCBA Golf series has contributed to uplifting the social and economic livelihoods of communities.
NCBA Group PLC’s strong financial performance in Q1 2023 demonstrates its resilience, strategic focus, and commitment to customer satisfaction.
The Group’s increased profitability, expansion efforts, and dedication to innovation and social responsibility highlight its position as one of the fastest-growing financial institutions in Africa.
With a growing customer base, a robust digital banking platform, and a solid regional presence, NCBA is well-positioned for continued success in the dynamic African market.
