NCBA Group PLC has announced results for the Full Year 2023. The banking conglomerate, serving an impressive customer base of over 60 million across five countries, has reported a significant leap in its financial health, underscored by a 56% surge in Profit After Tax, which soared to KES 21.5 billion from the previous year’s KES 13.8 billion. In this article we will dissects these numbers, providing a clearer breakdown of the Group’s financial performance and strategic initiatives that have steered its growth amidst a challenging macro-economic landscape.

NCBA Group’s Year of Robust Growth

  • Customer Deposits: Achieved a 15.3% year-on-year increase, closing at KES 579 billion. This surge reflects the bank’s growing trust and reliability among its customers.
  • Total Assets: Grew by 18.6%, reaching KES 735 billion, indicating a broadening asset base and enhanced financial stability.
  • Digital Loans Disbursement: Saw a remarkable 27.5% increase year on year, hitting KES 930 billion. This underscores NCBA’s robust digital banking platform and its appeal to over 60 million customers.
  • Operating Income: Rose to KES 63.7 billion, a 4.5% increase, highlighting efficient operations amidst economic uncertainties.
  • Credit Loss Provision: Decreased by 29.9%, amounting to KES 9.2 billion, suggesting improved credit risk management.
  • Profit Before Tax: Grew by 13.3%, reaching KES 25.5 billion, setting a prelude to the notable jump in after-tax profit.

Dividend Declaration

Reflecting confidence in its financial health and commitment to shareholder returns, NCBA’s Board recommended a final dividend of KES 3.00 per share, bringing the total dividend for the year to KES 4.75 per share.

Strategic Milestones and Recognition

John Gachora, NCBA Group Managing Director, attributes this stellar performance to the strategic alignment with the Group’s five-year plan, aimed at maximizing shareholder value while navigating economic challenges. The regional subsidiaries, comprising Tanzania, Rwanda, and Uganda, notably shifted from a collective loss to posting a profit before tax of KES 3.0 billion, a testament to the successful turnaround strategies implemented across these markets.

The year also saw NCBA earning accolades at the Institute of Customer Experience Kenya Service Excellence Awards, including the Best Customer Experience Strategy and Innovation in CX Week, highlighting its commitment to superior customer service.

In 2023, NCBA expanded its branch network to 109, reinforcing its presence across its operational regions. The Group’s Asset Finance market share cemented its leadership with a 34% stake, driven by strategic partnerships and innovative product launches such as logbook loans.

Digital lending remained a pivotal area, with the bank disbursing KES 930 billion in digital loans. This growth is not just in volume but also in the value it provides to customers, ensuring their financial well-being in a rapidly evolving digital economy.

Sustainability and Future Outlook

NCBA Group commitment to sustainability is evident in its “Change the Story” initiative, impacting education, environmental conservation, and promoting inclusive sports. The partnership with Proparco to mobilize USD 50 million for green and sustainable financing marks a significant step towards achieving its sustainability commitments.

Looking forward, NCBA is poised to continue its growth trajectory within its strategic framework, focusing on enhancing customer experience and leveraging its diversified business model to navigate economic uncertainties. The proposed acquisition of AIG Kenya Insurance Company Limited is set to broaden NCBA’s offerings, propelling it towards becoming a universal bank and deepening insurance market penetration.

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