NAIROBI, Kenya, May 20 – The merger between CBA and NIC Bank seems to be paying off after the newly formed entity posted profits, amounting to Sh1.6 billion for the first quarter of the 2020 financial year.
The company attributed the results to the growth of its markets across the region. As of May 2020, the group boasted of having a customer base of over 54 million in four East African countries.
The Group’s total operating income during the quarter was Sh10.9 billion while deposits reached Sh390.5 billion.
The bank’s net loan book closed at Sh245.9 billion.
NCBA MD John Gachora said the underlying trends of the income statement remained solid, with customer revenue growing. Operating costs, on the other hand, remained stable compared to the last quarter of 2019.
‘The year started strong with promising growth driven by optimism in the East African economies, however, the COVID-19 pandemic impacted business performance towards the end of the quarter where we saw reduction in transaction volumes and credit demand,”
“NPLs remain a major issue from legacy accounts for which we continue to provide. Further stress was seen in the digital business as a result of a one-off increase in limits.”
To that end, Gachora said the Group’s growth prospects will be impacted by the coronavirus.
The bank’s board had resolved to recommend to the shareholders the approval of a final dividend for the year of Sh1.50 per ordinary share bringing the total dividend to be paid for the year to Sh1.75 per ordinary share.
In response to the pandemic, NCBA has already restructured loans worth over Sh30 billion to cushion its customers against Coronavirus effects.