Led by Kenya’s richest families, NCBA Group beats profit expectations, rakes in over $100 million

NCBA Group, a financial services conglomerate controlled by some of Kenya’s wealthiest families, reported a substantial increase in its earnings at the end of its 2022 fiscal period.

According to the group’s recently published financial results, its profit exceeded $100 million, rising by 34.7 percent from Ksh10.22 billion ($77.25 million) to Ksh13.78 billion ($104.1 million) over the period.

The significant increase in NCBA Group’s earnings can be attributed to sustained growth in its interest and non-interest income during the review period.

The group’s interest income rose from Ksh46.51 billion ($351.57 million) to Ksh52.4 billion ($396.1 million), fueled by the steady expansion of its loan book.

In addition, its non-interest income surged by 36.82 percent, from Ksh22.1 billion ($167.03 million) to Ksh30.25 billion ($228.6 million), driven by an increase in foreign exchange trading income, which rose from Ksh5.05 billion ($38.2 million) to Ksh12.49 billion ($94.4 billion).

The growth in fees and commissions income also contributed to the rise in non-interest income, climbing from Ksh10.78 billion ($81.4 million) to Ksh11.25 billion ($85.04 million).

NCBA Group is a Nairobi-based financial services conglomerate that operates as a non-operating holding through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.

The Kenyan banking firm, established in 2019 by the merger of NIC Bank Group and Commercial Bank of Africa Group, now has 109 branches in five countries — Kenya, Uganda, Tanzania, Rwanda, and Cote d’Ivoire — and is partially owned by the super-rich Kenyatta, Merali, and Ndegwa families.

NCBA Group witnessed a surge in the demand for mobile-based credit facilities in 2022, lending out a total of Ksh729 billion ($5.51 billion) in digital loans.

This marked a significant increase of Ksh145 billion ($1.09 billion) from the Ksh584 billion ($4.41 billion) disbursed in digital loans in the previous year across the six countries where the bank operates.

The strong financial performance translated into an expansion of the group’s assets from Ksh591.08 billion ($4.46 billion) to Ksh619.7 billion ($4.68 billion), and a growth in its retained earnings from Ksh44.2 billion to Ksh51.27 billion, further highlighting the bank’s continued success in the market.