NAIROBI, Kenya, Mar 25 – NCBA Group mobile loans grew by 23 percent to Sh1 trillion in the 2024 fiscal year compared to a similar period in 2023, boosted by a financial inclusion campaign that reached over 60 million users.
An increase in digital loans contributed to the Group’s profit after tax growth, which ballooned by 2 percent to Sh21.9 billion.
Regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined profitability of Sh3.2 billion, 7 percent up year-on-year.
Likewise, its non-banking subsidiaries, including the investment bank, bancassurance, leasing, and insurance, recorded a 36 percent year-on-year growth, contributing Sh1.2 billion to Group profitability.
“The underlying trends of our P&L remained solid while our cost increase of 10 per cent was driven by targeted investments in digital transformation, network expansion and operational efficiency which have positioned us for long-term growth,” NCBA Group Managing Director John Gachora.
“Amidst ongoing external headwinds, NCBA’s strategic imperatives have enabled us to deliver shareholder value.”
In the review period, the financial institution’s operating income dropped by 1.5 percent to Sh62.7 billion, and operating expenses rose by 10.6 percent to Sh32.2 billion.
Customer deposits stood at Sh502 billion by the end of last year, down 13.4 percent year on year, with assets down 9.3 percent to Sh666 billion.
“We continue to tighten credit risk management, enhance recovery efforts, and refine our lending strategies to maintain a healthy loan book,” Gachora added.
“We remain focused on driving efficiency, deepening customer relationships, and leveraging digital channels for sustainable growth.”
As a result, the Group announced a final dividend payout of Sh5.5 per share.
