NCBA | NCBA Group FY'22 Earnings Note

NCBA Group released their FY’22 earnings results posting a 34.77% climb in EPS & PAT to KES 8.36/share and KES 13.78Bn respectively driven by a 13.47% increase in net interest income and a 36.82% growth in non-interest income. Trailing ROaE & ROaA improved to 17.19% & 2.28% respectively in FY’22. NIMs remained adequate at 5.89% while the profit margin edged up 181bps y/y to 22.61%. In line with our expectation, the board of directors recommended a final dividend of KES 2.25 in FY’22 taking the total dividend paid out in FY’22 to KES 4.25 representing a 41.67% increase from KES 3.00 paid out in FY’21. The book closure of the dividends is set for 28th April 2023 while payment date is set for 31st May 2023.

Loan book grew 14.29% y/y to KES 278.92Bn faster than the 6.98% y/y growth in the customer deposits to KES 502.68Bn leading to a 355bps growth in the loan deposit ratio to 55.49%. We observed considerable growth in Total Assets of the group (+4.83%) to 619.66Bn, (+24.80%) in digital loans disbursement to KES 729.00Bn from KES 584.00Bn in FY’21 and a 5.85% increase in shareholder funds to 82.42Bn from KES 77.63Bn recorded the prior year. NCBA Investment Bank recorded a 13.20% jump in PAT to KES 268.28Mn from 236.99Mn in FY’21. The dollar Investment Fund under the Unit trust business recorded a 19.72x loss in PAT to (KES 948.06Mn) from KES 50.66Mn recorded in FY’21 mainly attributable to the weakening of the shilling against the dollar. Allocation to government securities grew 456bps y/y to 228.78Bn in FY’22 driven by hunt for higher yields.


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