NCBA Group PLC – Annual Report 2019
The Group produced a resilient performance in 2019, achieving a full year Group net profit of Shs 7.8 billion, compared to Shs 5.0 billion in 2018. The adjusted Group net profit, excluding integration costs and merger-related amortization of intangibles, was Shs 11.3 billion, broadly in line with the previous year combined performance on a proforma basis of the two Banks. This is a notable achievement in a year of transition.
The Group’s 2019 results are a testament to the sound rationale behind the merger. Going ahead, NCBA will leverage on the core strengths of the two institutions to boost growth. The Group adopted the International Financial Reporting Standard (IFRS) 16, Leases, effective 1 January 2019. As a result, it recorded a charge to its opening equity on 1 January 2019 of Shs 160 million to reflect the impact on first adoption.
The Group did not restate comparative periods, as permitted by the standard. The impact on the Balance Sheet as at 31 December 2019 on adoption of IFRS 16 was an increase in right of use asset by Shs 3.9 billion, and lease liability increased by Shs 4.7 billion.
For a detailed description of the changes, refer to Notes 33 and 38 respectively in the Financial statements