John Gachora-led NCBA Group reports 159-percent surge in earnings in 9M 2021

One of East Africa’s leading financial services groups. NCBA Group, has posted Ksh6.53 billion ($58.01 million) in profit during the first nine months of 2021, as earnings surged by 159 percent during the period under review.

Research by Billionaires.Africa revealed that the group’s profits in the first nine months of 2021 surpassed the Ksh2.52 billion ($22.4 million) that it posted in the corresponding period of 2021 by Ksh4.01 billion ($35.6 million) thanks to strong underlying performance across all areas of its business and a slowly improving economy.

NCBA Group is a Nairobi-based financial services conglomerate led by Kenyan businessman John Gahora, who holds a total of 381,755 ordinary shares in the Kenyan financial services provider.

Aside from its operations in Kenya, Africa’s seventh-largest economy, the leading financial services group operates as a non-operating holding through the operations of its broad network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.

The triple-digit growth in the group’s earnings can be linked to a 20-percent increase in net interest income due to a growth in interest income from treasury investments and reduced interest expenses.

Its strong performance was supported by the recent integration of the entities, systems and processes of CBA Group and NIC Group following a merger and consolidation agreement in 2020.

As a result of the robust financial performance during the first nine months of 2021, the group’s total assets improved from Ksh519.17 billion ($4.61 billion) in 2020 to Ksh562.63 billion ($5 billion), while shareholder funds rose from Ksh70.63 billion ($627.8 million) to Ksh75 billion ($666.7 million).

NCBA’s financial performance reflects the management’s ability to tightly balance strong credit discipline with its commitment to support customers in this period.

These actions further strengthened the balance sheet and made the business even more resilient to navigate the unfolding impact of COVID-19.

As of press time, Nov. 27, shares in NCBA Group were worth Ksh23.5 ($0.209), 1.08-percent higher than its opening price on the Nairobi Stock exchange yesterday, Nov. 26.