Kenya’s NCBA Group soars with $65 million half-year profit

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Kenya’s NCBA Group, a leading financial services conglomerate, has reported exceptional financial performance in the first half of its fiscal year 2023, with profits surging to nearly $65 million.

The group’s profit for the first half of 2023 increased by 20.3 percent, jumping from Ksh 7.77 billion ($53.6 million) in H1 2022 to Ksh 9.35 billion ($64.5 million). This impressive growth reflects strong performance across all operational segments.

Kenya’s NCBA Group soars with $65 million half-year profit
Kenya’s NCBA Group soars with $65 million half-year profit.

The group’s aggregate income from interest-bearing assets, which include government securities, loans, and advances, saw a significant rise from Ksh 14.71 billion ($101.45 million) to Ksh 24.93 billion ($171.9 million). Additionally, non-interest income derived from fees, commissions on loans and advances, foreign exchange, and dividends climbed from Ksh 13.81 billion ($95.23 million) to Ksh 14.18 billion ($97.8 million).

The increase in interest income, from Ksh 14.71 billion ($101.44 million) to Ksh 24.93 billion ($171.92 million), can be attributed to the growth in net loans and advances extended to customers. These figures rose from Ksh 278.9 billion ($1.92 billion) at the beginning of the year to Ksh 292.4 billion ($2.02 billion) by June 30.

This robust financial performance is closely tied to the bank’s decision to raise interest rates on its loans in response to the recent adjustment of the benchmark rate by the Central Bank of Kenya (CBK). The interest rate was increased from 9.5 percent to 10.5 percent, resulting in higher interest income for the NCBA Group.

The NCBA Group’s achievement is particularly noteworthy as it is controlled by some of Kenya’s wealthiest families. This demonstrates their expertise in managing the financial conglomerate and their ability to generate substantial profits even in challenging market conditions.

Kenya’s NCBA Group soars with $65 million half-year profit
Kenya’s NCBA Group soars with $65 million half-year profit

The group’s success also highlights its strong position in the Kenyan financial sector. With its diverse range of financial services, including banking, asset management, insurance, and investment banking, the NCBA Group has established itself as a key player in the industry. Its robust performance in the first half of 2023 further solidifies its reputation as a reliable and profitable institution.

NCBA Group, a non-operational holding company, has a vast network of subsidiaries spread across different African nations, including Tanzania, Rwanda, Uganda, and Côte d’Ivoire.

This financial conglomerate was formed in 2019 as a result of the merger between NIC Bank Group and Commercial Bank of Africa Group. It is partially owned by prominent Kenyan families such as the Kenyatta, Merali, and Ndegwa families.

With its presence in five countries through 109 branches, NCBA Group demonstrated strong financial performance in H1 2023. This success propelled its retained earnings to Ksh 60.6 billion ($417.93 million) and total assets to Ksh 660.3 billion ($4.55 billion).

Such impressive results have established NCBA Group as one of Kenya’s most profitable lenders. As a testament to this achievement, the board of directors has approved an interim dividend of Ksh1.75 ($0.012) per share. Shareholders can expect these dividends to be credited to their bank accounts on September 14th.

Esther Jazmine
Esther Jasmine is a highly esteemed East African correspondent for Who Owns Africa, who has demonstrated an unwavering commitment to providing valuable information and insightful analysis. Her coverage of the dynamic realms of business, politics, governance, and current affairs is truly exceptional. Esther's passion for uncovering the truth is evident in her unique perspective and her ability to analyze and dissect current affairs with great skill. She possesses a deep understanding of the complexities and nuances of the political and business landscapes of East Africa.

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