NCBA Group PLC has announced its financial results for the fiscal year ending December 31, 2024, reporting a profit after tax of KES 21.9 billion. This marks a 2.0% increase from the KES 21.5 billion recorded in 2023, underscoring the bank’s steady growth amidst a dynamic economic environment.
Key Financial Highlights:
- Digital Loan Disbursements: NCBA’s commitment to financial inclusion has led to digital loan disbursements surpassing the KES 1 trillion milestone, reflecting a 23% year-on-year growth.
- Profitability Metrics:
- Profit After Tax: KES 21.9 billion, a 2.0% increase from the previous year.
- Profit Before Tax: KES 25.1 billion, a slight decrease of 1.0% year-on-year.
- Operating Income and Expenses:
- Operating Income: KES 62.7 billion, down by 1.5% compared to the prior year.
- Operating Expenses: KES 32.2 billion, representing a 10.6% increase year-on-year.
- Credit Provisions: Provision for credit losses stood at KES 5.5 billion, a significant 40% reduction from the previous year, indicating improved asset quality.
- Balance Sheet Position:
- Customer Deposits: KES 502 billion, a 13.4% decline year-on-year.
- Total Assets: KES 666 billion, down by 9.3% from the previous year.
- Dividend Declaration: The Board has proposed a final dividend of KES 3.25 per share, bringing the total dividend for 2024 to KES 5.50 per share.
Asset Quality and Capital Adequacy:
NCBA’s non-performing loan (NPL) ratio stands at 11.2%, reflecting disciplined credit underwriting, proactive portfolio monitoring, and robust customer engagement strategies. The impairment coverage ratio is at 60%, ensuring adequate provisioning against potential credit losses. The Group remains well-capitalized, maintaining sufficient capital buffers to support its operations and growth initiatives.
Strategic Initiatives and Digital Transformation:
NCBA’s achievement of disbursing over KES 1 trillion in digital loans underscores its pivotal role in driving financial inclusion across Africa. By leveraging strategic partnerships, the bank has expanded its reach to over 60 million customers, providing accessible financial solutions and fostering economic empowerment.
The Group’s focus on digital innovation, customer-centric products, and prudent risk management positions it well to navigate the evolving financial landscape. NCBA aims to continue its trajectory of sustainable growth, delivering value to shareholders and contributing positively to the economies in which it operates.
