NCBA Group net earnings for the first six months of 2022 rose to Sh7.8 billion compared to Sh4.7 billion same period last year, a 67.39 per cent growth.
Financial results released by Nairobi Securities Exchange shows the lender's net interest income grew to Sh14.8 billion compared to Sh13.4 billion the previous year.
Gross earnings increased to Sh11.1 billion from Sh7.4 billion.
The growth in profitability for the Group is largely attributable to higher revenue in the period and a drop in loan loss provisioning.
NCBA's total operating income has, for instance, soared by 13.3 per cent to Sh29.0 billion from Sh24.1 billion on the backdrop of a 10.4 per cent growth in net interest income.
Non-interest-funded income grew 32 per cent to Sh14.18 billion from Sh10.70 billion in the same period.
The Group’s total assets increased to Sh504 billion in the period under review from Sh542.6 billion in 2021.
NCBA Group had more than doubled its full-year net profit for the year ended December 2021 from Sh4.6 billion in 2020 to Sh10.2 billion.
In the first half of this year, customer deposits declined from Sh470 billion recorded in 2021 to Sh468 billion.
Investment in Government securities rose to Sh123.5 billion during the period compared to Sh102.7 billion last year.
Digital loan disbursements increased 25 per cent to Sh339 billion from Sh272 billion in 2021.
The lender's saw a 38 per cent drop in total non-performing loans from Sh37.5 billion to Sh28.2 billion.
Meanwhile, latest data from the Central Bank of Kenya (CBK) shows bank loan defaults have crossed the half a trillion shilling mark for the first time, setting up thousands of borrowers for property seizures.
This as the country's economy continues to be hit with reduced cash flows and inflation that has squeezed household budgets and demand for goods.
The data shows that defaulted loans rose by Sh30.6 billion in June to Sh514.4 billion, the sharpest monthly increase in recent history.
A growing pool of distressed borrowers has been created mainly due to severe drought, surging inflation that has hit demand for goods, scarce jobs and prolonged political uncertainty in the wake of the disputed presidential vote.
A number of borrowers are being seized by newly aggressive lenders.
According to CBK data, the share of non-performing loans rose to a new high 14.7 per cent in June—a higher ratio than the 14.55 per cent recorded in March 2021 when Kenya was battling Covid-19 economic hardships.
“The sectors that have pushed up the NPLs is construction—especially in infrastructure like roads— hospitality and manufacturing,” KCB Group chief executive officer Paul Russo said on Wednesday.
