Companies

NCBA to open 4 new branches as profit doubles to Sh6.5bn

gachora

NCBA Group Managing Director John Gachora during an investor briefing for Q3 2021 financial results in Upper Hill, Nairobi on November 24, 2021. PHOTO | LUCY WANJIRU | NMG

NCBA Group #ticker:NCBA plans to open four new branches before the end of the year as it seeks to double its network to get “closer to its customers”.

The bank, which reported 2.5 times to jump in its net profit in the nine months to September on Wednesday, said it will set up the brick-and-mortar outlets in Gikomba, Kiambu, Ngong and Naivasha.

The lender posted a Sh6.5 billion net profit for the third quarter driven by higher interest income and reduced loan loss provisions.

Interest income grew nine percent to Sh34.2 billion, while loan loss provisions fell 31 percent to Sh9.2 billion compared to a similar period last year.

“We are feeling optimistic that economic recovery is certainly underway and that it will reflect in a continued uplift of our financial performance in the near term,” NCBA Managing Director John Gachora said.

NCBA targets to raise its branch count from 78 branches to 84. Last year, it shut 14 of its branches in Kenya last year due to the disruption caused by Covid-19.

The new branches add to nine others in Nyeri, Karatina, Embu, Ruiru, Kakamega, Bungoma, Kericho, Nairobi and Mombasa it opened earlier this year.

“We have embarked on a bold branch expansion strategy,” said Mr Gachora said, adding that: “We want people to know that we are not just for corporate banking and asset financing but we also offer so much more and to different market segments.”

The expansion comes even as lenders shift from offering services in banking halls to digital platforms.

The rise of digital banking has allowed banks to reach customers directly, reducing the need for physical locations in a move that has also led to massive job losses among clerical staff.

NCBA confirmed plans to hire more staff to fill positions at the new branches.

[email protected]