February 9, 2024
NCB Financial Group Limited (NCBFG) for the first quarter ended December 31, 2023, reported a 15% increase in interest income totalling $21.66 billion compared to $18.88 billion in the corresponding three months last year.
Interest expense amounted to $10.06 billion (2022: $7.54 billion), this represents an increase of 33% year over year. Consequently, net interest income increased by 2% to $11.60 billion compared to $11.34 billion for the first quarter ended December 31, 2022.
Net fee and commission income increased by 9% to close at $6.47 billion (2022: $5.96 billion), while net result from banking and investment activities increased by 4% from $18.79 billion in 2022 to $19.51 billion for the three months. As a result, net result from banking and investment activities amounted to $19.51 billion relative to $18.79 billion a year prior.
Insurance service result was $6.20 billion compared to $3.33 billion in 2022. Net insurance expenses valued $6.12 billion; a 30% increase relative to the $4.71 billion recorded in 2022. As a result, net revenues from insurance activities for the first quarter amounted to $15.01 billion, an 85% increase relative to $8.10 billion reported in 2022.
Net operating income for the three months amounted to $34.52 billion, a 28% increase relative to $26.89 billion reported in 2022. Total operating expenses totalled $26.17 billion, a 14% increase from the corresponding period last year. (2022: $23.01 billion).
Operating Profit for the first quarter ended December 31, 2023, amounted to $8.35 billion, an 115% increase relative to $3.88 billion reported in 2022.
Profit before Taxation for the three months had a 106% increase to reach $8.40 billion (2022: $4.07 billion). Taxation for the three months amounted to $2.43 billion, a 30% increase from the $1.87 billion reported in 2022.
Net Profit increased by 170% to $5.97 billion (2022: $2.21 billion). Net Profit Attributable to Shareholders for the first quarter totalled $3.08 billion, relative to the $1.38 billion reported twelve months prior.
Consequently, Earnings Per Share for the three months amounted to $1.32 (2022: EPS: $0.60). The twelve-month trailing EPS was $3.77, and the number of shares used in these calculations was 2,545,325,512. Notably, NCBFG’s stock price closed the trading period on February 8, 2024, at a price of $66.27 with a corresponding P/E ratio of 17.59x.
Balance Sheet Highlights
The company’s assets totalled $2.22 trillion (2022: $2.08 trillion). NCBFG noted, “the growth in the asset base was mainly due to increased investment securities (+13%) and net loans and advances (+5%), which was mainly funded by repurchase agreements, deposits and other borrowed funds.”
Shareholder’s equity was $159.66 billion (2022: $132.55 billion), representing a book value per share of $64.73 (2022: $53.74).
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