Kenya-based financial services conglomerate NCBA Group has reported a 77-percent growth in its profit in the first half of 2021. A strong underlying performance across key segments of its business and the recovery of the economy saw its profit increase by double digits.
Figures contained in the group’s financial results revealed that profits grew from KSh2.8 billion ($25.9 million) in the first half of 2020 to N5.1 billion ($46.0 million) in the first half of 2021 as its total interest income for the period more than doubled.
NCBA Group Plc is a Nairobi-based financial services conglomerate with operations in East and West Africa.
John Gachora leads the group.
Aside from its operations in Kenya, the leading financial services provider functions as a non-operating holding through the active operations of its wide network of subsidiaries in Tanzania, Rwanda, Uganda and Cote d’Ivoire.
Since its incorporation in 1959, NCBA has evolved into a large financial services conglomerate with assets valued at more than Ksh500.2 billion ($4.6 billion) as of June 2021, up from KSh491.6 billion ($4.5 billion) in December 2020.
Aside from the 104-percent increase in its interest income to KSh20.5 billion ($186.5 million), the strong growth in its mid-year earnings was supported by another 104-percent rise in non-interest income.
The non-interest income growth came amid an increase in the group’s fees and commissions income and its foreign exchange trading income.
The management revealed that NCBA’s financial performance in the first half 0f 2021 reflected its strong underlying performance across all areas of the group’s business and a slowly improving economy.
The group noted that the performance demonstrates its ability to tightly balance strong credit discipline with the commitment to support customers during this period. This strategy strengthened its balance sheet and made the business even more resilient to navigate the unfolding impact of the COVID-19 pandemic.
The company’s board has approved the payment of an interim dividend of KSh0.75 ($0.006824) for every ordinary share held.
The group will pay the interim dividend to shareholders on or immediately after Oct. 12.
Gachora, the group managing director, holds 381,755 ordinary shares in NCBA.