NCBA Group #ticker:NCBA has posted a 20.3 percent increase in profit after tax to Sh3.41 billion for the first quarter ending March 31, 2022.
The growth was attributed to increased operating income which rose to Sh13.14 billion in the period under review from Sh11.83 billion in the same period last year.
The Nairobi Securities Exchange-listed firm reported an overall interest income of 12.16 billion from Sh11 billion in the same period last year due to heavy investing in government securities which rose from Sh4.3 billion in 2021 to Sh5.7 billion.
Customer deposits also soared from Sh4.2 billion in 2021 to Sh4.29 billion signaling the return on investing in new branches last year.
The group has been investing in new branches both in its Kenyan business and in Rwanda where it’s opening 2 new branches.
“In 2021, NCBA Bank had the fastest growing branch network in Kenya. During the year, the bank in Kenya opened 13 new branches across key strategic towns that ultimately contributed to 11 percent growth in customer deposits,” the bank said in a statement.
Operating expenses were driven by staff costs, which rose from Sh1.9 billion to Sh2.16 billion in the period under review.
Loan loss provisions remained relatively flat at Sh2.5 billion a slight decrease from Sh2.6 billion in the previous year.
The Group’s total assets increased to Sh587 billion in the period under review from Sh542 billion in 2021.
NCBA Group had more than doubled its full-year net profit for the year ended December 2021 from Sh4.6 billion in 2020 to Sh10.2 billion.
The growth was driven by a strong performance from its banking, unit trust and investment bank operations.
Last year, the Kenyan business had more than doubled its net profit from Sh5.5 billion a year earlier when it absorbed losses from the three other markets, leaving the group with consolidated net earnings of Sh4.5 billion.