NCBA Group has announced a record dividend payout of Sh7.8 billion, a 56.2% increase from the previous year. This translates to a per-share dividend of Sh4.75, comprising an interim dividend of Sh1.75 and a final dividend of Sh3. The dividend growth represents an 11.42% increase over the Sh7 billion paid out in 2022.
The increased dividend is attributed to NCBA's strong financial performance, with net earnings rising to Sh21.4 billion from Sh13.7 billion in 2022. This growth was driven by higher operating income and controlled costs. Total operating income increased to Sh63.6 billion, supported by a 13% jump in net interest income.
Despite a 4% decline in non-interest-funded income, the bank managed to contain its cost base, with total operating expenses rising only marginally to Sh38.2 billion. This was aided by a 30% reduction in loan-loss provisions to Sh9.1 billion, supported by a decline in the bank's net non-performing loans ratio to 12%.
NCBA's balance sheet also expanded by 18.5%, with assets reaching Sh734.6 billion from Sh619.6 billion in 2022. The bank's strong financial performance and prudent risk management have contributed to its continued success and shareholder value creation.