NCBA Bank has posted a 77 % rise in half-year profit to Kes 4.66 billion during the half-year period ended 30th June 2021 compared to Kes 2.6 billion recorded during the same period in 2020.
The group attributed the strong financial performance to the 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.” NCBA Managing Director, John Gachora.
Profit before tax during the half-year period stood at kes 7.4 billion, a 90 % increase compared to Kes 3.9 billion reported during a similar period last year. Consequently, operating income in the group recorded a 45% rise from kes 3.04 billion recorded in 2020 to kes 4.40 billion recorded during the period ended 30th June 2021.
NCBA reported total assets of Kes 542.60 billion a 5% increase from the Kes 514.03 billion recorded during a similar period in 2020. The performance was attributed to the increased economic activity that has come about as a result of the reopening of the economy resulting in increased productivity in the group.
NCBA Outlook and Dividend.
NCBA has expressed optimism in their performance in 2021 saying they have taken the bold step to restructure 35 % of their credit portfolio and have seen a positive outcome of those actions as 82 % of that restructured portfolio is now performing.
NCBA also added it 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.
“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.” NCBA Managing Director, John Gachora.
The board of directors recommended the payment of an interim dividend of Kes 0.75 per share.