NCBA Group, a financial services group led by Kenya’s wealthiest families, reported a double-digit percent increase in earnings at the end of the first six months of 2022, with profits exceeding $65 million, prompting the banking group to announce an interim dividend.
NCBA Group is a non-operating holding with subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire. It was formed in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group (CBA), to form the country’s third-largest bank.
CBA was led by Kenya’s affluent Kenyatta, Merali, and Ndegwa families.
Despite difficulties in its operating environment, profits in the first six months of 2022 rose by 67 percent, from Ksh4.7 billion ($39.2 million) in the first half of 2021 to Ksh7.8 billion ($65 million), according to figures contained in the group’s recently published half-year financial reports.
The double-digit increase in earnings was driven by a significant rise in interest and non-interest income, as the group benefited from retail expansion strategies resulting in a 20-percent growth in operating income from Ksh24 billion ($199.94 million) to Ksh29 billion ($241.6 million).
NCBA Group Group Managing Director John Gachora said the results are due to strategic measures taken to assist clients in navigating the macroeconomic climate, while adding that the merger of the two banking institutions is performing as predicted.
He further added that NCBA created an enabling environment for businesses to thrive in the half-year period by expanding its product portfolio and tailoring solutions to customer needs. He also noted that the bank will continue to provide financial relief to families and small businesses through its digital banking partnerships.
As a result of the excellent financial performance, the company’s board approved the payment of an interim dividend of Ksh2 ($0.0166) per share to qualified shareholders on or after Sept. 30.
