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NCBA Group, a leading financial services conglomerate controlled by some of Kenya’s wealthiest families, has reported a strong performance for fiscal year 2023, overcoming economic headwinds to reach a profit after tax of Ksh21.46 billion ($162.69 million).
This represents a significant increase from Ksh13.78 billion ($104.47 million) reported the previous year, demonstrating the company’s resiliency across all operations. The group’s certified financial reports showed significant growth, with operating income reaching Ksh63.7 billion ($483 million), up from Ksh61 billion ($462.53 million) in 2022.
Total assets also increased significantly, jumping 15.65 percent to Ksh734.62 billion ($5.57 billion) from Ksh619.66 billion ($4.70 billion) the year before. Customer deposits grew by 13.13 percent to Ksh579 billion ($4.39 billion), up from Ksh502 billion ($3.81 billion) in 2022.
NCBA Group’s managing director, John Gachora, attributed the company’s success to the effective implementation of its five-year strategic plan. He went on to say, “The Business has sustained growth momentum in line with our five-year strategic plan, which has positively enhanced shareholder value while supporting customers amidst a challenging macro-economic environment.”
Furthermore, Gachora emphasized the significant increase in the profitability of the group’s regional businesses, particularly in Tanzania, Rwanda, and Uganda, which combined for a profit before tax of Ksh3.0 billion ($22.75 million). This showed a significant improvement over the loss reported in the prior fiscal year.
NCBA Group is headquartered in Nairobi, Kenya, and operates as a holding company with subsidiaries in Tanzania, Rwanda, Uganda, and Côte d’Ivoire. NCBA was formed in 2019 by the merger of NIC Bank Group and Commercial Bank of Africa Group, and it has since established itself as a prominent participant in East Africa’s banking sector.
The company, which is partially owned by famous Kenyan families such as the Kenyattas, Meralis, and Ndegwas, aims to improve Kenyan operations while growing its regional footprint.
NCBA’s board of directors has approved a final dividend of Ksh3 per share, increasing the total year distribution to Ksh4.75 (0.04) per share. This dividend is likely to benefit the company’s large Kenyan shareholders, emphasizing its financial strength and stability.
