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.
Kenyas business drives growth as regional subsidiaries perform wellThe 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 NCBAs 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 Groups profit before tax.
NCBAs 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 Groups profit before tax, further diversifying its revenue streams.
Solid performance despite challenging economic conditionsNCBA 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 banks fee-based revenue showed significant growth, reflecting the increasing diversity of its earnings mix. Gachora highlighted that NCBAs 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 NCBAs acquisition of Unga Groups 6.6 million loan portfolio from Absa Bank, further solidifying its foothold in Kenyas competitive banking sector.
