NCBA Group PLC has posted a profit after tax of KES 21.5 billion in its Full Year 2023 results, which is a 56 per cent increase compared to KES 13.8 billion reported during a similar period in 2022.
Key Highlights
- Customer deposits closed at KES 579 billion, 15.3 per cent up year on year.
- Assets grew to KES 735 billion, 18.6 per cent up year on year.
- NCBA disbursed KES 930 billion in digital loans, a 27.5 per cent increase year on year.
- Operating income of KES 63.7 billion, 4.5 per cent up year on year
- Provision for credit losses was KES 9.2 billion, 29.9 per cent down year on year.
- Profit before tax of KES 25.5 billion, 13.3 per cent yearly.
- Profit after tax of KES 21.5 billion, 55.7 per cent up year on year
The growth trajectory for the Group remained solid driven by positive operating income and a decline in loan impairment charges by 29.9 per cent year on year. Operating expenses closed at 19 per cent up year on year driven by inflationary pressures and continued investment in the current strategic priorities.
While releasing the Full Year 2023 financial results, NCBA Group Managing Director, John Gachora commented, “The Business has sustained growth momentum in line with our five-year strategic plan, which has positively enhanced shareholder value while supporting customers amidst a challenging macro-economic environment.”
“Our regional subsidiaries (Tanzania, Rwanda and Uganda) collectively delivered a profit before tax of KES 3.0 billion, a notable improvement from the loss of KES 308 million posted in Full Year 2022,” said Gachora. These outstanding results were driven by the Group’s turnaround strategy in Tanzania through recalibration of the business model and a right sizing of the operating models in Uganda and Rwanda to accelerate growth.
The Group’s Asset Finance market share and leadership position reached 34% while retail asset finance disbursements increased by 18% enabled by stronger relationships with distinctive strategic partnerships. The partnerships were further scaled through product launch of the logbook loans, the KMI Motor Show and Johari Awards, which affirmed NCBA as a true supporter of the automotive industry.
Access to digital credit remained a key focus area to help customers manage their financial well-being. Digital lending for the period reached KES 930 billion for NCBA’s over 60 million customers across Africa while mobile transaction volumes grew 37% year on year.
