NCBA Bank buoyed by UGX27 bn net profit
DREAM TEAM: NCBA Bank Uganda CEO Mark Muyobo (2L), Board chairman Humphrey Nzeyi (2R) and Olivia Mugaba, Head of Business Banking and SMEs, talk to a customer at the launch of their Premier Banking service recently.
Corporate banker, NCBA Bank Uganda has announced its financial results for the fiscal year 2023, showcasing robust growth and profitability driven by strategic investments in a strong performance culture.
The bank reported a net profit of UGX27 billion, marking a 17% increase from the previous year's performance. The growth was supported by a surge in customer deposits, which rose to UGX567 billion from UGX491 billion in the preceding year.
Patrick Muyobo, the bank's Chief Executive Officer, also attributed the performance to NCBA's strategic focus on fostering a high-performance culture and leveraging the performance of its digital lending arm, Mokash.
- He emphasized the bank's commitment to enhancing financial inclusion in the country by providing access to short-term credit and savings platforms to millions of Ugandans through Mokash.
"Through our digital lending business of Mokash, we have elevated financial inclusion in the Ugandan market through easing access to short term credit to the unbanked and providing a savings platform to ten million clients," Muyobo said.
The bank witnessed notable growth, with total assets increasing by 9% to UGX854 billion, while total equity recorded a remarkable 29% jump. Additionally, gross loans and advances to customers grew by 8%, reaching UGX242 billion.
- On the income side, the bank demonstrated healthy growth, with total income increasing from UGX100 billion to UGX114 billion, representing a robust 14% rise. Additionally, the bank managed to reduce impairments by an impressive 56%, from UGX7 billion to UGX4 billion.
Operational costs were also effectively managed, with a 6% reduction, contributing to the bank's overall profitability in the year.
Muyobo highlighted NCBA's resilience and adaptability in navigating market challenges, as evidenced by the bank's 16% year-on-year growth in total income, with profit before tax increasing by 46%, and net profit after tax rising by 19%.
Looking ahead, Muyobo reaffirmed their commitment to delivering on strategic business priorities, leveraging on digital capabilities, and maintaining a customer-centric approach to doing business.
"With a solid financial foundation and a culture of innovation, NCBA Bank Uganda is poised to capitalize on emerging opportunities and drive sustainable growth in the market," he said.
- In the period under review, the Kenya-based NCBA Group injected UGX22.6 billion into its Ugandan subsidiary. This contribution was part of a larger investment totaling UGX155.83 billion, which the company allocated across its subsidiaries in Uganda, Rwanda, and Tanzania, aimed at fortifying its regional retail banking business.
- Going forward, Muyobo said NCBA Bank Uganda is set to scale up the integration of sustainability into its business strategy and operations, anchored on five Environmental, Social and Governance (ESG) pillars, which is aimed at proactively contributing to a more equitable, resilient, and environmentally sustainable world.