NCBA Group reported a 20.1% increase in earnings per share (EPS) to Ksh 5 in the first half of 2023, compared to Ksh 4.72 in the same period last year.
The bank attributed the improved performance to lower provisions for bad loans, which declined by 21% to Ksh 4.4 billion, and higher net interest income, which grew by 9.7% to Ksh 26.8 billion.
The bank’s total assets expanded by 9.3% to Ksh 660 billion, driven by growth in loans and advances, which increased by 10.2% to Ksh 414.7 billion.
Customer deposits also rose 8.9% to Ksh 506.6 billion, while its liquidity ratio remained above the regulatory minimum of 38%.
While releasing the half-year financial results, NCBA Group Managing Director, John Gachora commented, “These strong operating results are attributable to a consistent focus on our strategic priorities.”
However, the bank faced some challenges in its non-interest income, which dropped by 2.6% to Ksh 13.8 billion, mainly due to lower fees and commissions from digital channels and trade finance.
The bank also saw its gross non-performing loans (NPLs) increase by 15.6% to Ksh 42.6 billion, raising its NPL ratio to 10.3%, above the industry average of 9%.
The bank’s board of directors declared an interim dividend of Ksh 1.75 per share, payable on October 31, 2023, to shareholders on record as of September 30, 2023.
NCBA Group resulted from a merger between NIC Bank and Commercial Bank of Africa in October 2019.
The bank operates in Kenya, Tanzania, Uganda and Rwanda.