NCBA Group PLC, one of Africa’s largest banking groups, reported a staggering 56% surge in its annual profits for 2023, propelled by robust growth across its operations. The full-year results unveiled on Wednesday showed the group’s net profit after tax soared to KES 21.5 billion, up from KES 13.8 billion a year earlier.
The stellar performance was driven by a 4.5% increase in operating income to KES 63.7 billion and a 29.9% reduction in provisions for credit losses to KES 9.2 billion, reflecting improved asset quality. Customer deposits climbed 15.3% to KES 579 billion, while total assets grew 18.6% to KES 735 billion.
“The business has sustained growth momentum in line with our five-year strategic plan, which has positively enhanced shareholder value while supporting customers amidst a challenging macro-economic environment,” said John Gachora, NCBA Group Managing Director.
Digital lending emerged as a key growth engine, with NCBA disbursing KES 930 billion in digital loans – a 27.5% year-on-year increase – to its over 60 million customers across Africa. Mobile transaction volumes surged 37%.
Gachora highlighted the group’s regional diversification strategy, stating: “Our regional subsidiaries (Tanzania, Rwanda and Uganda) collectively delivered a profit before tax of KES 3.0 billion, a notable improvement from the loss of KES 308 million posted in Full Year 2022.”
NCBA’s commitment to enhancing customer experience paid dividends, with the group winning three awards at the Institute of Customer Experience (ICX) Kenya Service Excellence Awards, including Best Customer Experience Strategy.
The group plans to acquire 100% of AIG Kenya Insurance Company Limited, subject to regulatory approval, to unlock its ambition of becoming a universal bank and catalyze deeper insurance market penetration.
Looking ahead, Gachora said, “The prevailing economic uncertainties will require increased investment in enhancing our customer experience and the collective strengths of our diversified business model to sustain shareholder returns.”
The strong performance enabled NCBA’s board to recommend a final dividend of KES 3.00 per share, bringing the total dividend for the year to KES 4.75 per share.