NCBA, a leading financial institution, announced a remarkable 49 percent increase in net profit after tax, reaching Sh5.1 billion for the first quarter ending in March this year. The surge in profitability can be attributed to a rise in operating income.
Operating income witnessed a substantial growth of 18 percent, reaching Sh15.5 billion, while credit loss provision experienced a notable decline of 23 percent, amounting to Sh2 billion during the same period.
The improved performance comes in the face of challenging macroeconomic conditions that prompted the Central Bank of Kenya (CBK) to raise lending rates in an effort to combat inflation.
“The impressive operating results we have achieved are a direct outcome of our unwavering commitment to our strategic priorities, an increase in customer base, and enhanced profitability of our regional entities,” stated John Gachora, Managing Director of NCBA Group.
Gachora further added, “Our exceptional forex capabilities have not only expanded our customer base but have also led to a surge in transaction volumes.”
During the period, NCBA disbursed a total of Sh223 billion in digital loans, indicating a substantial growth of 37 percent compared to the previous year. The loans were primarily facilitated through the M-Shwari and Fuliza platforms.
Fuliza, which stands as NCBA’s largest credit service, charges customers a nominal fee of one percent of the disbursed amount, along with an additional daily charge of Sh36 for outstanding loans.
Initially introduced in 2012 through a partnership between Safaricom and NCBA, M-Shwari joined forces with KCB to launch Fuliza seven years later.
Furthermore, client deposits witnessed a steady increase of seven percent, amounting to Sh500 billion.
“Our growing and stable deposit base showcases our ability to attract and invest in both retail and corporate customers, offering them an enhanced experience and convenience through an extensive network,” emphasized Gachora.
NCBA’s systematic expansion of branches has enabled them to operate across 26 counties in Kenya. The organization aims to cover a total of 36 counties by 2023 and plans to add an additional 10 counties during the same year, consequently generating employment opportunities in these regions.