NCBA reported strong financial fundamentals, highlighting a positive operating income of KES 31 billion and a 38.3% year-on-year decline in loan impairment charges.
According to NCBA, these results were attributed to the Group’s strategic focus on becoming a distinguished brand known for customer experience, scaling retail banking, deepening leadership in corporate banking and asset finance, driving digital transformation, and fostering a high-performance employee culture.
John Gachora, Group Managing Director of NCBA, expressed satisfaction with the financial results for the first half of 2024, despite challenges in the current operating environment. He noted that the diversified business model of the Group continued to demonstrate resilience.
The Group’s banking business reportedly delivered a collective profit before tax (PBT) of KES 11.7 billion during the period, which remained flat year on year due to a tight interest rate environment that increased the cost of funds and pressured profit margins. Nevertheless, NCBA remained committed to strategically managing its balance sheet and optimizing financial performance to sustain growth.
NCBA’s non-banking subsidiaries, including investment banking, bancassurance, and leasing, were said to have significantly contributed to overall performance, with profitability of KES 0.6 billion and an impressive 56% year-on-year growth. This growth was cited as evidence of the enduring strength and versatility of the NCBA brand in delivering substantial value to customers and shareholders.
The Group’s recognition as a distinguished brand for customer experience was reportedly acknowledged through various awards, including Excellence in Customer Experience at the Connected Banking Summit, 2nd place overall in the KBA Customer Satisfaction Survey, and Best Bank in Customer Experience by Africa Bank Awards. NCBA was also ranked 6th in Kenya, 85th among Africa’s most valuable brands, and one of the top 5 most loved banks by women in Kenya.
NCBA’s commitment to putting customers at the heart of its operations was demonstrated through initiatives such as the SME Development Programme partnership with Strathmore Business School, which impacted over 1,500 business owners, and scheme agreements with several vehicle dealers that sustained NCBA’s asset finance market leadership at 37%. Additionally, the Group recently waived monthly account maintenance fees for retail banking customers to cushion economic shocks and drive customer acquisition.
NCBA reportedly accelerated financial inclusion across the region by disbursing KES 478 billion in digital loans and innovating on digital platform services, empowering over 60 million customers across Africa to achieve their financial goals.
The Group also emphasized its role as a leading employer in the region, creating additional job opportunities through the expansion of its smart network, which now comprises 115 branches, and enhancing digital skills development for a future-proof organization.
In line with its sustainability commitments, NCBA reported progress in environmental and social impact activities, including awarding 169 education scholarships, planting 175,044 trees, mobilizing KES 6.5 billion in green and sustainable financing, and upskilling 90% of its staff through the ‘I Change the Story’ program. The 100% acquisition of AIG Kenya was also noted as a strategic move to strengthen NCBA’s position in the financial services industry by offering customers access to a comprehensive range of financial products.
Looking ahead, Gachora reportedly remarked on the economic outlook for the latter half of the year, expressing cautious optimism. He observed positive trends in Kenya, such as easing inflation and currency stabilization, and emphasized the importance of the government’s commitment to sustainable growth, fiscal discipline, and fostering a favorable financial environment to support private sector success.
The Group’s strong performance reportedly enabled the Board of Directors to approve an interim dividend declaration of KES 2.25 for every ordinary share.