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NCBA Group reports 159pc surge in Q3 profits

NAIROBI, Kenya Nov 24 – NCBA Group Plc has reported a 159 pc increase in its profit after tax for the nine-month period ending September 2021. which rose up from Sh. 2.5 billion to Sh.6.5 billion, the growth was attributed to increases in operating income.

The group reported that operating income rose by 10 percent (up Sh.3.2 Billion) to Sh.36 billion, which was driven by higher customer activity and a decline in loan impairment charges of Sh.4.2 billion years on year.

Over the period under review, customer deposits rose by 11 percent closing at Sh447 billion.

NCBA Group Managing Director, John Gachora noted that the financial results demonstrated the resilience the bank had in increasing customer experience within an improving economic environment.

“Our operating results since the beginning of the year demonstrate that the actions we have taken to strengthen and enhance the group’s performance are well on track. We continue to exercise a conservative approach towards credit risk management,” Gachora noted.

The Group further reported that their asset base rose to Sh563 billion while their non-performing loans coverage ratio increased to 70 percent, from 58 percent in the same period last year.

Loan impairment charges for the period went down by 31 percent to Sh.9.2 billion.

Gachora revealed that the bank had signed various partnerships aimed at solidifying its strength in asset finance, growing its property finance business, facilitating customer deposits and providing support to Small and medium-sized enterprises (SMEs).

He further pointed out that the bank was in the process of opening more branches across the country in order to improve their operation and reach a wide range of customers.

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“In addition to our investments in modernizing our technology, architecture to deliver better customer propositions and to structurally improve our operational efficiency and agility, we have embarked on a bold branch expansion strategy.  Since the beginning of the year, we have opened nine branches. We plan to open four more branches by the end of this year,” he said.

 

 

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