NCBA quarterly profit soars to Ksh.2.8 billion

NCBA Group has posted a remarkable 75 per cent earnings surge in the first quarter with its quarterly profit soaring to Ksh.2.8 billion from Ksh.1.6 billion last year.

The notable growth in profitability is largely attributable to a rebound in interest earnings and cost containment measures which took effect in the period.

NCBA’s net interest income was for instance up by 20 per cent to Ksh.6.6 billion with interest income growing by 7.8 per cent to Ksh.11 billion to Ksh.11 billion.

The bank’s total operating income was meanwhile 8.3 per cent higher at Ksh.11.8 billion despite a 3.7 per cent decline in non-interest funded income (NFI) to Ksh.5.2 billion.

At the same time, NCBA shed six percentage points off its total operating base to Ksh.7.8 billion. This is as the bank trimmed its cover for bad loans to Ksh.2.6 billion from a higher Ksh.3.8 billion last year.

Despite the slash in provisioning costs, NCBA’s stock of gross non-performing loans rose by 2.1 per cent to Ksh.39.6 billion.

NCBA Group Managing Director John Gachora termed the quarterly performance as a reflection of the rebounding macro environment.

“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. These actions have further strengthened the balance sheet and made the business even more resilient to navigate the unfolding impact of COVID-19,” he said.

“We view 2021, as our transition year following the finalization of 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”.

NCBA now has an asset base of Ksh.542.1 billion to include Ksh.243.1 billion in customer loans.
The net loans and advances to customers have nevertheless reduced by a marginal one per cent from Ksh.245.9 billion.

Subsequent to the profit jump, NCBA’s earnings per share (EPS) now stand at Ksh.1.72 from Ksh.1.09.

Tags:

NCBA

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories