NCBA to pay record Sh7.8bn dividend after profit surge
From Left to Right: NCBA Bank Group Director, Finance David Abwoga, Director of Strategy and Chief of Staff Louisa Wandabwa, Group Managing Director and CEO John Gachora and Ag Group Director, Global Markets Raphael Agung' during the NCBA full year 2023 Financial results at Radisson Blu Hotel, Nairobi Upper Hill on March 27, 2024. PHOTO | DENNIS ONSONGO | NMG
NCBA Group is set to pay a record Sh7.8 billion dividend following a 56.2 percent jump in net profits for the year ended December 2023.
The higher dividend represents a payout of Sh4.75 a share after the lender added a Sh3 final pay to the interim Sh1.75 declared in September last year.
This compares to a total dividend of Sh7 billion in 2022 or a Sh4.25 per share total payout representing an 11.42 percent growth in shareholder pay. The record dividend comes amid a rise in NCBA's net earnings to Sh21.4 billion from Sh13.7 billion previously on stronger operating income and contained costs.
“We have recorded a very strong return to our shareholders and our underlying performance shows momentum in all our financial drivers,” NCBA Group managing director John Gachora said.
Non-interest-funded income, however, dipped by four percent to Sh29 billion from Sh30.2 billion on lower foreign exchange trading income.
On the flipside, the bank contained its cost base as total operating expenses only rose marginally to Sh38.2 billion from Sh37.9 billion.
This is as the bank cut its loan-loss provisions by 30 percent to Sh9.1 billion from Sh13 billion. The lower provisions were supported by a decline in the bank’s net non-performing loans ratio which eased to 12 percent from 12.7 percent sticking well below the industry average of 14.8 percent as of December 2023.
“When you look at our stock of NPLs, there is a lot of mediation going on and there are a couple of names that are on the right track and we would expect to upgrade them. As such, we do not expect a significant increase in non-performing loans,” said director of Finance David Abwoga.
NCBA’s balance sheet expanded by 18.5 percent as assets hit Sh734.6 billion from Sh619.6 billion in 2022.
