NCBA Group has posted Kshs 9.8 billion in net profit during the first six months of this year. NCBA Group, Managing Director, John Gachora attributes the 5.4% increase in net profit to improved operating income.
During the six-month period, NCBA Group increased customer loans by 5.9% to Kshs 309.7 billion.
Interest income rose 23.7% to Kshs 38.1 billion shillings while non-interest income grew 7.9% to Kshs 14.9 billion.
“Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience,” said Gachora.
The hike in the benchmark lending rate has seen the stock of non-performing loans in the banking industry increase. However, the reverse is the case for NCBA Group whose gross non-performing loans reduced by 4.1 percent from Kshs 42.6 billion to Kshs 40.9 billion.
Following the increase in net profit, NCBA Group has proposed an interim dividend payout of Kshs 2.25, which is higher than the Kshs 1.75 that shareholders pocketed during a similar period last year.
Gachora says NCBA Group’s assets have increased 4.4% to Kshs 689.1 billion.
Going forward, NCBA Group Managing Director says: “The economic outlook for the latter half of the year presents a nuanced blend of optimism and caution. In Kenya, we have observed positive trends with inflation easing to 4.6% and the local currency stabilizing against major currencies.
“We are encouraged by the Government’s commitment to support sustainable growth, to maintain fiscal discipline, and to continue fostering a favorable financial environment. These efforts will be key in driving economic progress and supporting the ongoing success of the private sector.”