NCBA Group managing director John Gachora during an investor briefing of the half-year to June results on August 30, 2021. PHOTO | DIANA NGILA | NMG NCBA Group’s net earnings rose 76.9 percent in the half year ended June on increased income from lending and transactions.
The bank made a net profit of Sh4.6 billion in the review period, up from Sh2.6 billion a year earlier.
NCBA resumed interim dividend payouts, joining Stanbic Holdings in doing so as other top rivals including KCB Group , Absa Bank Kenya and Standard Chartered Bank Kenya continued with their suspension of cash distribution.
“The directors have approved payment of an interim dividend of Sh0.75 for every ordinary share,” NCBA said in a statement, adding that the payout will be made on October 12 to shareholders who will be on the register as of September 28.
The lender last paid an interim dividend of Sh0.25 per share for the half year ended June 2019.
Stanbic was the first Nairobi Securities Exchange-listed bank to announce resumption of mid-year cash distribution, declaring a dividend of Sh1.7 per share for the half year ended June.
The outbreak of the Covid-19 pandemic last year saw the listed banks respond to the health and economic crisis by a mix of dividend cuts and suspension.
The lenders have, however, posted strong earnings recovery this year on the back of improved economic prospects and reduction in loan loss provision.
NCBA’s total interest income in the review period rose 8.6 percent to Sh22.4 billion, thanks to increased investment in government debt securities and improved yield on ordinary loans.
The stock of government bonds and T-bills expanded by Sh17.4 billion to Sh172.3 billion while loans receded by Sh8.7 billion to Sh239.6 billion.
Non-interest income including fees and commissions increased 6.2 percent to Sh10.7 billion.NCBA also benefitted from lower costs as total operating expenses reduced by Sh664.6 million to Sh16.3 billion.The bank cut its loan loss provision by Sh1.7 billion to Sh5.9 billion, contributing to the reduced overall expenses.The decline in provisions came despite gross non-performing loans rising 16.4 percent to Sh45 billion.Customer deposits increased by Sh46.8 billion to Sh437.3 billion but interest expenses shrunk by Sh419.2 million to Sh9 billion.NCBA says it is opening more branches in parts of the country where it did not have an adequate presence.The bank will soon open two branches in Nairobi –Gikomba and River Road— besides Embu, Kikuyu, Ngong, Kiambu, Kericho, Bungoma and Naivasha for a […]