NCBA Group released their Q3’22 earnings posting a 96.21% & 96.20% climb in EPS & PAT to KES 7.77 and KES 12.80Bn respectively driven by a 15.07% increase in net interest income and a 40.14% growth in non-interest income. Trailing ROaE & ROaA improved to 21.19% & 2.85% respectively. NIMs remained adequate at 5.96% while the profit margin edged up 429bps q/q to 27.96%. Factoring in the growth from previous quarters, we foresee the lender closing FY’22 with a PAT of between KES 14.00 - 17.00 Bn.
Loan book grew 11.73% y/y to KES 266.11Bn faster than the 3.24% y/y growth in the customer deposits to KES 462.11Bn leading to an 823bps growth in the loan-to-
deposit ratio to 57.59%. Allocation to government securities grew 10.42% y/y to 232.65Bn in 3Q22. Fair Value change is a percentage of government securities was 1.26% in Q3'22 vs 0.23% recorded in Q3’21.
