NCBA Group PLC has reported Kshs 15.1 billion in net profit for the first nine months of 2024, which represents a 3% growth.
Even though the lender increased disbursements of digital loans by 8% to Kshs 751 billion, it had to earmark Kshs 4.1 billion as provision for credit losses which ate into its bottom-line.
NCBA Group Managing Director, John Gachora says: “Our strong credit management enabled stability in lending outcomes, bucking industry trends with lower impairment charges (down 33 percent) and improved asset quality.”
Highlighting the tough operating environment that businesses in Kenya are operating in, Gachora noted that NCBA is handling the situation to deliver results for shareholders, customers as well as other stakeholders.
“The underlying trends of our P&L remained solid against an exceedingly volatile operating environment which has impacted our cost of funding and put pressure on our Net Interest Income. However, our fee based revenue continues to grow reflecting the growing diversity of our earnings mix,” he said.
Key highlights
- Total Assets closed at Kshs 679 billion, remaining flat year on year.
- Digital Loans disbursed were Kshs 751 billion, 8% increase year on year.
- Operating income of Kshs 46.9 billion, 0.6% up year on year.
- Operating expenses of Kshs 28.6 billion,1.6% up year on year.
- Provision for credit losses was Kshs 4.1 billion, 32.8% down year on year.
- Profit before tax of Kshs 18.4 billion, 1.0% down year on year.
- Profit after tax of Kshs 15.1 billion, 3.0% up year on year.