NCBA Group has posted a 97 per cent rise in net profit in the third quarter to Ksh.12.8 billion.
The profit which compares to earnings of Ksh.6.5 billion last year is largely attributable to higher income for the period which was up by 26.2 per cent at Ksh.45.8 billion.
Higher income for the Group has been anchored on a 39.8 per cent rise in non-interest funded income under which foreign exchange income more than tripled to Ksh.9.2 billion from Ksh.3.5 billion.
Meanwhile, NCBA’s net interest income has grown by 14.9 per cent to Ksh.23.2 billion from Ksh.20.2 billion last year.
Growth in interest income has been supported in part by an 11.7 per cent growth in net loans and advances to customers which stood at Ksh.266.1 billion from Ksh.238.2 billion.
Costs for the bank have grown at a slower rate of 8.9 per cent to Ksh.26.9 billion from Ksh.24.7 billion despite the lender’s expansionary stance which is set to see it open at least 12 new branches by the end of the year.
The lower costs growth has been flanked by a 9.8 per cent decline in loan-loss provisioning costs to Ksh.8.3 billion from Ksh.9.2 billion.
The lower loan-loss provisioning costs have been backed by a 20.9 per cent decline in gross non-performing loans (NPLs).
NCBA has not recommended the payment of an interim dividend for the period.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]