NCBA profits up supported by growth in interest income

KAMPALA - NCBA Bank has reported growth in net profit after tax to sh38.9b from sh26.9b for the year ended December 31, 2024, according to the bank’s earnings report.

The growth was largely driven by stronger interest income and improved asset quality.

For instance, the bank earned sh62.8b, up from sh53.5 in interest income from loans and advances from customers. Interest income from lending to government grew from sh21b to sh34b according to its audited financial statements released on April 29.

“In 2024, we implemented and improved risk management framework by reviewing the credit management structure, and credit management process and building the resources bench strength of the department which resulted in non-performing loans ratio of 3.8% below the industry average of 5.2% as we continued to improve our asset quality,” Mark Muyobo, CEO at NCBA Bank, said.

The bank’s total assets grew 12.8% to sh963b, up from sh853b a year earlier, while customer deposits surged 15.3% to sh654b. Loans and advances to customers rose 17.8% to sh298b from sh253b, reflecting expanded lending activity.

The bank’s non-performing loans dropped to sh11.8b from sh18b in 2023, and core capital adequacy improved to 38.4% of risk-weighted assets, up from 34.4%.

The robust balance sheet performance resulted in an 11% growth of Operating Income from sh85b in 2023 to sh95b in 2024 and a 40% increase in profit before tax from sh32b to sh46b.