NCBA Group net profit has risen by 4.3pc to reach Ksh 9.8 billion from Ksh 9.4 billion in six months to June this year.
The bank’s profitability was sustained by its diversified investments and operating income which rose by 1.1pc year-on-year to reach Ksh 31.4 billion though outpaced by operating expenses which surged by 15.5pc to Ksh 16.5 billion.
“Despite some headwinds presented by the current operating environment, our diversified business model continued to demonstrate resilience,” said John Gachora, Group Managing Director of NCBA.
The bank says its non-banking subsidiaries, including Investment Banking, Bancassurance and Leasing contributed in strengthening its overall performance in the period under review to contribute Ksh 600 million in profitability.
Gachora says despite gross profits remaining flat at Ksh 11.7 billion, the non-banking subsidiaries posted a 56pc year-on-year growth.
“These outcomes are flat year on year largely driven by a tight interest rate environment which has elevated our cost of funds and pressured our profit margins. Despite these challenges, we remain committed to strategically managing our balance
sheet and optimizing our financial performance to sustain our growth trajectory,” he added.
In the period under review, the lender says its disbursed digital loans totaling Ksh 478 billion, a 4pc increased when compared to the same period last year.
The group’s provisions for credit losses during the period also declined to Ksh 2.7 billion, a 38.3pc reduction.
NCBA Group board has approved an interim of Ksh 2.25 for every ordinary share.
