NAIROBI, Kenya, Mar 29 -NCBA Group PLC has posted a profit after tax of Sh4.6 billion for the financial year ending December 31, 2020.
The company’s pre-tax profit for the period under review was Sh4.98 billion, down 56 percent due to increased impairments, occasioned by the impact of COVID-19.
This is the first time NCBA is announcing full-year results as an entity following the successful merger of NIC Group PLC and CBA in October 2019.
The Bank’s Managing Director John Gachora said the Group maintained strong operational performance, reporting an operating income growth of 38 percent to Sh46.4 billion.
Non-funded income remained a key revenue driver contributing 45 of operating income.
The bank’s asset base rose to Sh528 billion while deposits stood at Sh421.5 billion.
“In a year of unprecedented challenges for our business, the banking sector and the economy at large, I am extremely proud of the results that the Group delivered. Despite the massive economic impact of COVID-19, our operating income increased 38% to close the year at Sh46.4 billion,” Gachora said.
“To cushion our business and our customers against the impact of COVID-19, we took unprecedented measures throughout the year. We implemented a robust cost containment plan that reduced operating expenses and contributed to the operating profit increase.”
“Further, to support our customers we restructured Sh78 billion of loans and increased our credit provision reserves by Sh20 billion to address the uncertain economic environment that continues to persist. The high levels of credit provisions taken resulted in a year over year drop in profit after tax of 42 percent.”
During the period under review, the bank’s net loan book stood at Sh248.5 billion. Its non-performing loans stood at Sh40.1 billion up 19 percent.
The board has resolved to recommend to the shareholders for their approval of the payment of a final dividend for the year of Sh1.50 per share.
“The dividend will be payable to the shareholders registered on the Company’s register at the close of business on 20th April 2021 (closing date for determination of entitlement to dividend).”