• The group posted a profit before tax of Sh 7.4 billion which is a 90 per cent increase compared to Sh3.9 billion reported during a similar period last year.
• Growth in profitability was attributed to an increase in operating income by Sh2.8 billion, driven by higher customer activity and a decline in loan impairment charges by Sh1.7 billion.
NCBA Bank has posted a 77 per cent rise in 2021 half-year net profit to Sh4.66bn.
The 77 per cent growth is up from Sh2.6 billion in the half-year of 2020.
The group posted a profit before tax of Sh 7.4 billion which is a 90 per cent increase compared to Sh3.9 billion reported during a similar period last year.
Growth in profitability was attributed to an increase in operating income by Sh2.8 billion, driven by higher customer activity and a decline in loan impairment charges by Sh1.7 billion.
In the half-year results ending June 30, NCBA said it will pay an interim dividend of Sh0.75 per share.
Asset base rose to Sh542 billion, six per cent up year on year while customer deposits closed at Sh437 billion.
The Group disbursed Sh272 billion in digital loans.
Group Managing Director, John Gachora said the strong financial results are outcomes of a steadily improving economic environment and early outcomes of the Group’s focus on its strategic initiatives anchored on customer experience.
“We have made a concerted effort to reduce the risk in our credit portfolio while balancing the need to support our customers during this COVID-19 period. Looking at our results, you will note that our loan impairment charges, which were a lag on performance last year, have greatly reduced,” he said.
” Over the last year, we have taken the bold step to restructure 35 per cent of our credit portfolio and we have seen a positive outcome of those actions as 82 per cent of that restructured portfolio is now performing. We are very optimistic that NCBA is poised for continued strong bottom-line growth in the near-term to medium term. ”
Gachora added that the group is on track to deliver on its strategic imperatives to enhance its branch network across the country and to digitally transform its operations and customer experiences.
Since the beginning of the year, NCBA had opened branches in Nairobi JKIA, Mombasa Mwembe Tayari, Karatina, Nyeri, Kakamega and Ruiru.
“We plan to open nine more branches by the end of this year to ensure that we bring our services closer to existing and potential customers,” Gachora said.
During the first half of the year, NCBA signed several partnerships aimed at solidifying its strength in asset finance and growing its property finance business.
On the asset finance front, the bank signed partnerships with Simba Corp, DT Dobie, Tata Africa Holdings, Isuzu East Africa to offer asset finance solutions to customers.
Edited by D Tarus
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