NCBA Group Q1 profit grows by 74pc

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NCBA
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NCBA Group’s after-tax profit for the first quarter ending March 21, 2021 has jumped 74 percent to Ksh. 2.84 billion up from Ksh. 1.6 billion recorded in a similar period last year.

NCBA Group Managing Director John Gachora has attributed the upturn to the firm’s businesses remaining resilient despite operating in a tough environment owing to the Covid-19 pandemic and the economy’s gradual recovery from its effects.

“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,” The NCBA MD said in a report by Business Today.

In the period under review, NCBA’s total assets grew by 6 percent to Ksh. 542 billion up from Ksh. 509 billion recorded last year. The Group’s net interest income similar increased by 20 percent and this was largely due to the Group’s returns from treasury investments increasing. Customer deposits on the other hand grew by 11 percent in the first quarter of the year.  Gross loans also rose by 2 percent in the period while digital bank investments jumped to 134 billion up from Ksh. 108 billion recorded in Q1 of the previous financial year.

Mr. Gachora similarly revealed that the Group is currently implementing an ambitious growth strategy plan to expand its local footprint, unveil groundbreaking digital products and services and increasing investments in two of its most well-performing business segments, Corporate Banking and Asset Finance

“We have kicked off the year with a strong start and already made significant investments in new products, technology, and distribution, to position the business for a period of sustained growth. While we are cautiously optimistic about economic recovery this year, we believe that we have put in place the building blocks to unlock the opportunities that will emerge from this recovery period,” Mr. Gachora added.

RELATED: NCBA launches logbook loan product for businesses

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