NCBA Group, a financial services conglomerate controlled by some of Kenya’s richest families, has demonstrated its commitment to increasing its profitability beyond Kenya’s borders by investing an additional Ksh3.47 billion ($26 million) in its regional subsidiaries during its 2022 fiscal year.
Specifically, NCBA Bank Tanzania, a Tanzanian subsidiary of the Kenyan banking group, received Ksh2 billion ($15 million) in funding during the period under review.
The funding allowed NCBA Group to acquire the remaining 6.56-percent stake in NCBA Bank Tanzania that was previously held by minority shareholders, increasing its ownership to 100 percent.
This transaction builds on the Kenyan banking group’s acquisition of a 93.44-percent stake in NCBA Bank Tanzania in 2019.
During the 2022 fiscal year, the banking group, owned by some of Kenya’s richest families, made significant investments in its Ugandan and Rwandan subsidiaries totaling Ksh814 million ($6.1 million) and Ksh458 million ($3.43 million), respectively.
Additionally, it invested Ksh200 million ($1.5 million) in Kenyan-based Loop DFS, formerly known as Bantech Limited.
As a result, the value of the group’s subsidiary investments increased from Ksh70.61 billion ($528.5 million) in 2021 to Ksh74.08 billion ($554.5 million) in 2022.
NCBA Group, a prominent financial services conglomerate headquartered in Nairobi, operates as a non-operating holding company with an extensive network of subsidiaries in several African nations, including Tanzania, Rwanda, Uganda, and Cote d’Ivoire.
The leading Kenyan banking group, 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 some of Kenya’s richest families, Kenyatta, Merali, and Ndegwa families.
At the end of its 2022 fiscal year, NCBA posted a 34.7-percent increase in its profit from Ksh10.22 billion ($77.25 million) in 2021 to Ksh13.78 billion ($104.1 million) in 2022, thanks to sustained growth in its interest and non-interest income during the review period.
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 ($330.9 million) to Ksh51.27 billion ($383.8 million), further highlighting the bank’s continued success in the market.
