NCBA net profit hits record Sh13.7bn, increases dividends


Wednesday March 29 2023


NCBA Bank managing director John Gachora. PHOTO | NMG

NCBA Group has increased its dividends payout for the second straight year after net profit for the financial year ended December 2022 grew by 35 percent to Sh13.78 billion.

The board has recommended a total dividend of Sh4.25 per share, up from Sh3 that was paid previously when the net profit was at Sh10.22 billion.

This marks the second year running for the lender to increase dividends payout given that it had paid Sh1.50 on 2020 performance.

The bank, a product of the 2019 merger between NIC and CBA, saw a rise in net earnings in the period interest and non-interest income grew in line with increased lending.

Net interest income rose from Sh27.04 billion to Sh30.68 billion, helped by increased lending that took the loan book from Sh244 billion to Sh278.9 billion.

Non-interest income hit Sh30.25 billion from Sh22.11 billion, adding support to the growth in the bottom line.

Operating expenses however rose from Sh33.45 billion to Sh37.92 billion as the lender increased provisioning for loan defaults by 2.8 per cent to Sh13.1 billion. Staff costs also rose from Sh7.95 billion to Sh10.12 billion.

The increased profitability saw the NCBA board recommend a final dividend of Sh2.25, which when added to Sh2 interim dividend that was paid last September, will bring the total dividend to Sh4.25 amounting to Sh7 billion.

“The (final) dividend will be payable to the shareholders registered on the company’s register at the close of business on April 28, 2023, and will be paid on or after May 31, 2023,” said NCBA.

The Sh7 billion dividend is an equivalent of 50.8 percent of the net profit, marking increased distribution from the previous year when the Sh4.94 billion was 48.3 percent of the profits.

Local companies, with a stake of 76.97 per cent in the lender, will have received a total payout of Sh5.39 billion while local individual shareholders will receive Sh1.58 billion on their 22.63 per cent stake.

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Beryl Onyango

Beryl Onyango is a CPA and economics degree holder who has dedicated her career to helping others navigate the complex world of finance. Beryl has spent the past 3 years working as a finance specialist in a fintech company and has 6 years of experience in finance, working with a diverse range of clients and industries. Beryl's expertise lies in budgeting, saving, investing, and retirement planning, but she also has a deep understanding of various other areas of finance. She is interested in financial technology and how it changes how we manage our finances. As a finance writer, Beryl has been sharing her insights and knowledge through her writing, covering various finance and personal finance topics. Her goal is to educate and empower individuals to take control of their finances and achieve their financial goals. In addition to her professional experience, Beryl is a lifelong learner, always seeking to expand her knowledge and stay up-to-date with the latest developments in finance. She is also a strong communicator, able to explain complex financial concepts in a clear and easy-to-understand manner. Beryl believes that financial literacy is the key to achieving financial success, and she is dedicated to helping others achieve their financial goals.

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