NCBA Group has reported a Sh21.9 billion net profit for the financial year 2024, marking a 2% year-on-year increase from Sh21.5 billion in 2023.
The growth was driven by disciplined credit management, reduced loan loss provisions which came down by 40% to Sh5.5 billion, and a Sh1 trillion milestone in digital loan disbursements equivalent to a 23% annual surge.
While profit after tax rose marginally, profit before tax dipped 1% to Sh25.1 billion due to a 10.6% rise in operating expenses totaling Sh32.2 billion, attributed to investments in digital transformation and regional expansion. Operating income fell 1.5% to Sh62.7 billion, reflecting broader economic pressures. However, the Group’s non-performing loan (NPL) ratio of 11.2% and 60% impairment coverage underscored its robust risk management framework.
Shareholders received a final dividend of Sh3.25%, bringing the total FY 2024 payout to Sh5.50 per share. Despite a 13.4% decline in customer deposits equivalent to Sh502 billion and a 9.3% drop in total assets that stood at Sh666 billion, the Group maintained its capital strength, signaling confidence in its liquidity position.
Regional subsidiaries in Uganda, Tanzania, and Rwanda contributed Sh3.2 billion in profitability, up 7% YoY, while non-banking units, including Investment Banking, Bancassurance, Leasing, and Insurance, grew by 36% to Sh1.2 billion, segments that highlighted NCBA’s diversified revenue streams and strategic focus on cross-border financial services.
“We are pleased to announce our Full Year 2024 financial results which reflect the resilience of our diversified business model. The underlying trends of our P&L remained solid while our cost increase of 10 per cent was driven by targeted investments in digital transformation, network expansion and operational efficiency which have positioned us for long-term growth. Amidst ongoing external headwinds, NCBA’s strategic imperatives have enabled us to deliver shareholder value,” John Gachora, the NCBA Group Managing Director said.
The Group expanded its branch network to 119 locations and partnered with Postbank to onboard 476 agents, enhancing accessibility. Its asset finance leadership, of which it has a 35 per cent market share and revamped corporate banking platform further solidified its competitive edge., Gachora said.
NCBA advanced its ESG goals by planting 426,678 trees, mobilizing Sh6.5 billion in green financing, and training over 500 employees on sustainability. In the review period, the Group won over 30 awards, including Best Bank in Customer Experience and SME Financier of the Year, reinforcing its commitment to innovation and community impact.
Gachora emphasized tightening credit risk management and leveraging digital channels for growth, underscoring confidence in NCBA’s ability to navigate macroeconomic challenges while delivering shareholder value. With its rebranded insurance subsidiary (formerly AIG Kenya) and ongoing digital transformation efforts, Gachora said the Group is poised to deepen its regional footprint and sustain profitability in 2025.
