NCBA Group Reports Kes 2.84 Billion Profit for Q12021.
NCBA Group PLC has recorded a profit after tax of Kes 2.84 billion for the quarter ending March 31, 2021. This was an increase of 74% compared to Kes 1.6 billion that the Group posted during a similar period in 2020.
In Q1 2021, total assets increased to Kes 542 billion, representing a strong growth of 6% year on year. Customer deposits in the period increased by 11% year on year, fueled by strong business development efforts that have attracted new customers to the Group.
Commenting on the results, NCBA Group Managing Director John Gachora said the results reflect strong underlying performance across all areas of the business and a slowly improving economy.
“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,” John Gachora
Net interest income in the group recorded a 20% increase year on year. The increase was attributed to growth in interest income from treasury investments and a reduction in interest expense following the retirement of NCBA Group’s medium-term note in Q3 2020. Operating income in the period closed at Kes 11.8 Billion, representing 8% growth against prior year performance.
The company’s gross loans stood at Kes 283 billion during the period ended 31st March 2021, representing 2% year on year growth in all banking subsidiaries.
Digital bank disbursements increased significantly by 26% to Kes 134 billion in Q1 2021 from Kes 108 billion during the same period in 2020. The group said the growth was in line with their digitization agenda and its commitment to supporting small businesses and individual customers during this period.
NCBA Group’s non-performing loan ratio stood at 13.99%, in line with industry-wide levels given the impact of COVID-19 on the economy.
The group said it has embarked on an ambitious growth strategy, which will include expanding its branch network, rolling out new innovative digital products and services and doubling down on its core strengths of Corporate Banking and Asset Finance.
Read also: NCBA’s Post a 42% Decline in Profit For FY2020.