NCBA Group, a key player in East Africa’s financial sector, has announced impressive financial results for the fiscal year ending December 2023. The bank reported a notable 56.2 percent surge in net profits, reaching Sh21.4 billion compared to Sh13.7 billion in the previous year.
As a testament to its robust performance, NCBA has declared a record dividend payout of Sh 7.8 billion to its shareholders. This dividend, amounting to Sh4.75 per share, marks a significant increase from the previous year’s distribution of Sh7 billion.
The growth in net earnings can be attributed to strengthened operating income and disciplined cost management practices. Despite a slight decline in non-interest-funded income, NCBA demonstrated resilience by containing total operating expenses and reducing loan-loss provisions by 30 percent to Sh9.1 billion.
Furthermore, the bank improved its asset quality with a decrease in the net non-performing loans ratio to 12 percent, indicating effective risk management strategies. NCBA’s balance sheet expanded by 18.5 percent to Sh734.6 billion, reflecting strategic investments and sustained growth.
John Gachora, Group Managing Director and CEO of NCBA, expressed confidence in the bank’s performance and commitment to delivering value to stakeholders. With a focus on sustainable growth, NCBA aims to leverage its strong financial foundation to drive continued success in the region’s dynamic financial landscape.
Photo source Google
By: Montel Kamau
Serrari Financial Analyst
28th March, 2024
