NCBA Group PLC reports a profit of KES 4.98 Billion in 2020

NCBA Group PLC has posted a profit before tax of KES 4.98 billion for the financial year ending December 31, 2020. This is the first time NCBA is announcing full-year results as an entity following NIC Group PLC and CBA’s successful merger in October 2019. The Group maintained strong operational performance, reporting an operating income growth of 38% to KES 46.4 billion. Operating profit (before provisions and exceptional items) increased by 37% to KES 26.8 billion.

John Gachora, NCBA Group Managing Director said, “In a year of unprecedented challenges for our business, the banking sector and the economy at large, I am extremely proud of the results that the Group delivered. Despite the massive economic impact of COVID-19, our operating income increased 38% to close the year at KES 46.4 billion. To cushion our business and our customers against the impact of COVID-19, we took unprecedented measures throughout the year. We implemented a robust cost containment plan that reduced operating expenses and contributed to the operating profit increase. Further, to support our customers we restructured KES 78 billion of loans and increased our credit provision reserves by KES 20 billion to address the uncertain economic environment that continues to persist. The high levels of credit provisions taken resulted in a year over year drop in profit after tax of 42%.”

“However, NCBA’s fundamentals remained solid with total assets up KES 33 billion to close at KES 528 billion and customer deposits up by KES 43 billion to close at KES 421.5 billion. We remain very well capitalized with core capital at KES 64.8 billion and have robust liquidity of 55%, allowing us to continue effectively serving our clients through these challenging times” John Gachora added.