NCBA Bank’s 3-percent profit growth in Q3 reaches $116.4 million

Oluwatosin Racheal Alabi -

Key Points

  • NCBA’s Q3 2024 profit grew by 3.0 percent to $116.4 million.
  • Kenya remains the Group’s largest revenue contributor, driving overall profit.
  • Digital financial inclusion efforts lead to $5.8 billion in loans disbursed.

NCBA Group, led by CEO John Gachora, reported a 3-percent increase in profit after tax for the third quarter of 2024, rising to KES 15.1 billion ($116.4 million), compared to KES 14.6 billion ($112.2 million) recorded in the same period last year.

Kenya’s business drives growth as regional subsidiaries perform well

The Group reported a profit before tax of KES 18.4 billion ($141.3 million), with its Kenya-based operations contributing 83 percent of this profit. The strong performance in Kenya remains the backbone of NCBA’s success, although regional subsidiaries in Uganda, Tanzania, and Rwanda also contributed a combined KES 2.4 billion ($18.5 million), accounting for 13 percent of the Group’s profit before tax.

NCBA’s focus on enhancing contributions from subsidiaries paid off, with all non-banking subsidiaries, including NCBA Investment Bank, Bancassurance, Leasing, and NCBA Insurance (formerly AIG Kenya), posting positive profitability. These subsidiaries collectively contributed 4 percent to the Group’s profit before tax, further diversifying its revenue streams.

Solid performance despite challenging economic conditions

NCBA Group Managing Director John Gachora commented on the results, stating: “We are pleased to announce continued strong performance in the third quarter of 2024. The underlying trends of our P&L remained solid against an exceedingly volatile operating environment, which has impacted our cost of funding and put pressure on our Net Interest Income.”

Despite these challenges, the bank’s fee-based revenue showed significant growth, reflecting the increasing diversity of its earnings mix. Gachora highlighted that NCBA’s strong credit management resulted in lower impairment charges (down 33 percent) and improved asset quality, bucking industry trends. This strategic expansion mirrors the ambitions of other East African financial institutions, such as NCBA’s acquisition of Unga Group’s $6.6 million loan portfolio from Absa Bank, further solidifying its foothold in Kenya’s competitive banking sector.

Digital solutions bring financial inclusion and boost loan disbursements

The Group’s investment in digital financial inclusion has also been a key driver of its performance. Through its mobile lending solutions, in partnership with Telcos, NCBA disbursed KES 751 billion ($5.8 billion) to over 60 million customers across Sub-Saharan Africa, demonstrating its commitment to expanding access to financial services. In addition, the Group's affordable solutions, such as the monthly maintenance fee waiver and financial literacy programs, have helped cushion customers from economic shocks, reinforcing the bank’s role in supporting financial resilience.

NCBA Q3 profit key highlights

In the third quarter of 2024, NCBA Group recorded total assets of KES 679 billion ($5.2 billion), which remained stable compared to the previous year. The bank's digital loan disbursements reached KES 751 billion ($5.8 billion), marking an 8 percent year-on-year increase, reflecting the growing demand for its mobile lending solutions. Operating income for the quarter amounted to KES 46.9 billion ($362.6 million), a modest 0.6 percent increase from the same period last year. However, operating expenses rose to KES 28.6 billion ($220.3 million), a 1.6 percent increase year-on-year, driven by inflationary pressures. The bank's provision for credit losses decreased by 32.8 percent, falling to KES 4.1 billion ($31.5 million), which helped improve its asset quality. Profit before tax stood at KES 18.4 billion ($141.3 million), reflecting a slight 1 percent decline from the previous year. Despite the challenging economic environment, NCBA's profit after tax grew by 3 percent to KES 15.1 billion ($116.4 million).