NCBA posts 75pc growth in first quarter net profit
NCBA Group has recorded an after-tax profit of Sh2.8 billion for the three months ending March 31, a 74 per cent increase compared to Sh1.6 billion it posted during a similar period in 2020.
Group Managing Director John Gachora, attributed the growth to strong underlying performance across all areas of the business and an improving economy.
“We are immensely proud of our strong financial results during the first quarter, NCBA Group has demonstrated the ability to tightly balance strong credit discipline with its commitment to support its customers during this period,” he said in a statement.
These actions, Gachora added, have further strengthened the balance sheet and made the business even more resilient to navigate the unfolding impact of Covid-19.
He said the group viewed 2021, as a transition year having finalised the merger and consolidation of all entities, systems and processes of CBA Group and NIC Group across the region in 2020.
“With the conclusion of this phase, the NCBA Group now has a solid foundation from which to springboard and boldly pursue its long-term strategy,” Gachora said.
The group’s total assets grew by six per cent to Sh542 billion while the operating income for the period rose by eight per cent compared to the previous year to Sh11.8 billion.
The company gross loans stood at Sh283 billion, representing two per cent year on year growth.
Digital bank
During the period, digital bank disbursements increased by 26 per cent to Sh134 billion from Sh108 billion recorded same period last year.
This, according to the banking group, is in line with NCBA group’s digitisation agenda and its commitment to supporting small businesses and individual customers during the period.
However, the group’s non-performing loan ratio stands high at 13.99 per cent in line with industry-wide levels given the impact of Covid-19. –Lewis Njoka
