NCBA Group has declared an interim dividend of KSh 1.75 per share, or payment of a total of KSh 471.8 Million to its shareholders, making it the second listed lender at the Nairobi Securities Exchange(NSE) to reward its shareholders during this H1 2023 earnings season. This is compared to a total interim dividend payment of KSh 18.3 Million made at the end of first half of 2022. The other lender apart from NCBA, which has declared a handsome return to its owners, is Stanbic Bank Kenya.
Shareholders of NCBA will receive the interim dividend payable to those of the company’s share register at the close of business on 14th September 2023, on 28th September 2023.
NCBA FINANCIALS FOR HY 2023
NCBA, which is the result of a merger in 2019, between NIC Group Plc and Commercial Bank of Africa has maintained a strong performance for the first half of 2023.
NCBA Group, which has subsidiaries in Uganda, Tanzania and Rwanda, recorded a 20.3% growth in Net Profit to KSh9.35 Billion in HY 2023 from KSh 7.8 Billion in HY 2022.
The Group’s revenue grew by 7% to KSh31.0 Million driven by net interest income growth of 16.3%.
The lender’s Balance Sheet size grew by 9.3% to KSh660.3 Billion boosted by a huge growth in customer deposits which was up 10.3% to KSh 516.6 Billion in HY 2023 from KSh 468.5 Billion at the end of June 2022.
The loan book grew from KSh 250.56 billion in HY 2022 to KSh 292.4 billion in HY 2023, according to the unaudited financial statements of NCBA, for the period ended 30th June 2023.
The Group cut its provisions for non-performing loans to KSh 4.4 Billion in HY 2023 from KSh 5.6 Billion in HY 2022 while its Gross Non performing loans grew from KSh 37.2 billion to KSh 42.6 billion between June last year and the first six months of 2023.
Total Shareholders’ Funds grew to KSh 88.3 Billion from KSh 80.2 Billion in HY 2022.
Total Interest Income was up from KSh 24.9 Billion in HY 2022 to KSh 30.3 Billion in HY 2023 compared to Total Interest Expense which increased to KSh 13.1 Billion in June 2023 from KSh 10.1 Billion in HY 2022.
NCBA Group Total operating income increased to KSh 31 Billion in HY 2023 from KSh 28.9 Billion in HY 2022 while the lender’s Pre-Tax Profit was up from KSh 11.2 Billion to KSh 12.4 Billion in HY 2023.
Earnings per Share(EPS) increased to KSh 5.67 in HY 2023 from KSh 4.72 in HY 2022. NCBA closed its last trading day on Wednesday, August 23, 2023, at KSh36.35 per share on the Nairobi Securities Exchange (NSE), recording a 5.7% drop from its previous closing price of KSh 38.55.
NCBA began the year with a share price of KSh39.35 but has since lost 7.62% off that price valuation, ranking it 39th on the NSE in terms of year-to-date performance.
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