NCBA recently announced impressive financial results for the first quarter of 2024, demonstrating continued growth and resilience. Despite a challenging economic climate, NCBA’s diversified business model and focus on customer experience have yielded positive results.
Financial Highlights:
- Profitability: NCBA achieved a positive operating income of KES 16 billion, indicating strong core business performance.
- Loan Management: Loan impairment charges declined by 30.9% year-on-year, reflecting improved credit management practices.
- Cost Efficiency: Operating expenses increased by 12% year-on-year, but this was kept in check through cost-efficiency initiatives.
John Gachora, Group Managing Director of NCBA, commented: “We are pleased to report strong financial results for Q1 2024. Our diversified business model, with a strong contribution from digital services and stable performance from regional subsidiaries, helped us navigate a challenging environment.”
Customer Centricity:
NCBA says they remain committed to delivering exceptional customer experiences. This dedication has been recognized by Brand Finance, a leading brand valuation consultancy. NCBA was named Kenya’s second fastest-growing brand, up 44% in 2024, and currently ranks 6th among the Top 25 Most Valuable Brands. Additionally, NCBA maintains its market share leadership in asset finance (35%) and continues to attract new customers with a growing deposit base. The expansion of their regional branch network to 114 locations further underscores their commitment to offering superior convenience.
Supporting Businesses and Financial Inclusion:
NCBA actively supports small businesses, a crucial segment of the Kenyan economy. Their partnership with Strathmore Business School’s Enterprise Development Programme empowers entrepreneurs with valuable tools and skills needed for growth.
NCBA is a leader in financial inclusion across Africa, serving over 60 million customers. Their digital lending platforms like LOOP, Mshwari, and partnerships with KCB and Safaricom’s Fuliza platform provide convenient access to credit, meeting daily financial needs and mitigating economic challenges.
Sustainability Efforts:
NCBA’s “Change The Story” platform is making significant strides towards achieving their 15 Sustainability Commitments. Through collaborations with various partners, NCBA has impacted countless lives:
- Over 100 students received educational scholarships.
- 10,000 golfers benefited from KES 60 million invested in regional tournaments.
- 400,000 tree seedlings were planted through funded nurseries.
- A USD 50 million facility supports green financing and women’s economic empowerment.
- The first EV charging station in Rwanda promotes electric vehicle adoption.
Looking Forward:
NCBA acknowledges the challenging economic environment but remains optimistic that ongoing public and private sector interventions will contribute to positive outcomes. They are committed to delivering on their strategic goals, driving sustainable growth, and creating value for shareholders.
This quarter’s report highlights NCBA’s robust financial performance, unwavering customer focus, and commitment to a sustainable future. NCBA is well-positioned for continued success in the years to come.
