NCBA Group PAT increased by 66.85% y/y to KES 7.77Bn while the EPS grew by a similar margin to KES 4.72, both were above our expectations. Growth was driven by a 20.10% y/y increase in Total operating income to KES 28.98Bn and a 6.12% y/y reduction in loan loss provisioning. Net-interest income grew at 10.23% y/y to KES 14.18Bn mainly driven by income from government papers as income from loans declined. Non-funded income grew 32.49% y/y to KES 14.18Bn on the back of increased digital transactions and a 121.94% y/y leap in income from forex trading to KES 5.29Bn. Subsequently, the revenue mix for NII:NFI shifted to 51:49 against the 56:44 recorded in HY’21, being one of the best balance in the banking industry. Effects of the lender’s exposure to government securities was reflected in a fair value loss of KES 1.92Bn which is 2.26% of the for-sale government securities.
