Table of Contents
Key Points
- NCBA Group saw a five-percent boost in profit after tax, totaling Sh9.8 billion ($76 million) for the first half of 2024.
- Even with tough economic times, NCBA’s varied business approach allowed it to post solid financial results and propose a dividend of Sh2.25 per share.
- Standard Chartered Bank Kenya experienced an almost 50-percent jump in net earnings to Sh10.2 billion ($79 million), thanks to increased income.
NCBA Group, a leading financial services conglomerate controlled by some of Kenya’s wealthiest families has reported a five-percent increase in profit after tax for the first half of 2024, reaching Sh9.8 billion ($76 million). This reveals a notable improvement from the Sh9.3 billion profit recorded in the same period in 2023.
John Gachora, the group managing director of NCBA, expressed satisfaction with the company’s performance.
“We are pleased to announce another set of strong financial results for the first half of 2024,” he said. Gachora attributed the success to NCBA’s diversified business model, which has helped the lender navigate a difficult operating environment.
Despite facing several economic headwinds, NCBA’s strategic focus on diversification and strong income growth has allowed the group to post solid results. In light of the positive performance, NCBA’s board has proposed an interim dividend of Sh2.25 per ordinary share.
Standard Chartered Kenya reports record earnings growth
While NCBA Group posted strong growth, other banks in Kenya also showed impressive performances. Standard Chartered Bank Kenya (StanChart), a subsidiary of the UK-based banking giant, reported a significant increase in its net earnings. For the half-year to June 2024, StanChart’s net earnings rose nearly 50 percent to Sh10.2 billion ($79 million).
This surge was primarily driven by higher interest income and non-funded income, showcasing the bank’s ability to capitalize on both lending and fee-based revenue streams.
StanChart’s robust financial results highlight the positive momentum within Kenya’s banking sector, despite the broader economic challenges. The bank’s growth in net earnings reflects its effective management of interest margins and successful efforts in expanding non-funded income sources, such as fees and commissions.
Positive Indicators for Investors
For investors, the results of NCBA and StanChart indicate that there is still room for growth in the banking sector, despite economic headwinds. NCBA’s ability to increase its profits while proposing a healthy dividend shows a strong balance sheet and effective cost management.
Meanwhile, StanChart’s nearly 50-percent rise in net earnings demonstrates its ability to leverage its global experience in managing local market conditions.
The broader implications for the Kenyan economy are also positive. The ability of these banks to perform well under challenging conditions suggests that the financial sector is well-positioned to weather economic storms. As Kenya continues to develop its infrastructure and attract investment, the strength of its banking sector will be a crucial factor in sustaining economic growth.
