NCBA Group PLC, linked to the family of President Uhuru Kenyatta, has posted a profit before tax of Sh6.4 billion in its Q1 results ending March 31st 2023.
The profit margin represents a 32 percent increase compared to the Sh4.8 billion reported during a similar period last year.
In quarter one of 2022, the Group registered a profit after tax of Sh5.1 billion representing 49 percent growth.
The Group's growth in profitability was attributed to an increase in operating income and a decline in loan impairment charges by 23 percent.
"Despite the tough macro-economic conditions, the Group’s prudent management of credit risk has resulted in an improved NPL ratio and a reduced cost of risk," the bank said.
Commenting on the results, NCBA Group Managing Director, John Gachora said:
“These strong operating results are attributable to a continued focus on our strategic priorities, growth in customer numbers and improvement in regional entities' profitability. Our market-leading forex capabilities have led to an increased customer base and transaction volumes.”
The Group`s regional footprint across 5 key markets in Africa; Kenya, Uganda, Tanzania, Rwanda and Ivory Coast has increased the opportunity to be relevant to more customers.
All regional subsidiaries are contributing positively to the Group following 2022 turnaround efforts and increasing the Group’s diversification of revenues.
“We have a stable and growing deposit base which is an indication of our ability to invest and attract more retail and corporate customers by offering a greater superior experience and convenience through a bigger network," Gachora said.
"Our systematic branch expansion has allowed us to cover 26 counties in Kenya, and we expect 36 in 2023 with a target to add another 10 in 2023 which will enhance job opportunities across the regions we operate in....”
NCBA Group has also connected the company's success with social progress.
This comes after over 100 students benefited from its 2023 education sponsorship initiative.
Through the Change The Story programme, NCBA with a number of partners has so far planted over 7 million trees as a corporate response to reforestation which is aligned with the Government’s target to plant 15 billion trees in the next ten years.
NCBA’s continued investment in the sport of Golf through the NCBA Golf series is a significant milestone in promoting and democratizing the sport and uplifting the social and economic livelihood of communities.
The key highlights of the bank's performance in year one include assets growing to Sh 629 billion representing 7 per cent up year on year.
Customer deposits closed at Sh500 billion, also a 7 per cent up year on year. Also, NCBA Group disbursed Sh223 billion in digital loans, a 37 per cent increase year-on-year
Within the same period, the operating income grew to 18 percent to Sh15.5 billion.