May 10, 2024

NCB Financial Group Limited (NCBFG) for the six months ended March 31, 2024, reported a 14% increase in interest income totaling $43.50 billion compared to $38.17 billion in the corresponding period last year. Interest Income for the second quarter had a 13% increase to close at $21.84 billion compared to $19.29 billion for the comparable quarter of 2023.

Interest Expense amounted to $19.73 billion (2023: $14.68 billion), this represents an increase of 34% year over year. Consequently, net interest income increased by 1% to $23.77 billion compared to $23.49 billion for the six months ended March 31, 2023. The company booked net interest income of $12.17 billion for the second quarter versus $11.80 billion reported for the similar quarter of 2023.

Net fee and commission income increased by 14% to close at $12.49 billion (2023: $10.93 billion), while Net Result from Banking and Investment Activities increase by 2% from $39.20 billion in 2023 to $40.01 billion in the period under review. As a result, net revenues from insurance activities for the six months amounted to $25.24 billion, a 51% increase relative to $16.67 billion reported in 2023.

Net operating income for the six months amounted to $65.25 billion, a 17% increase relative to $55.86 billion reported in 2023. Net operating income for the second quarter amounted to $30.74 billion (2023: $28.97 billion). Total operating expenses totalled $47.92 billion, a 5% increase from the corresponding period last year (2023: $45.84 billion).

Operating Profit for the six months amounted to $17.33 billion, a 73% increase relative to $10.03 billion reported in 2023. Operating Profit for the second quarter amounted to $8.98 billion (2023: $6.15 billion).

Profit before Taxation for the six months was $17.56 billion (2023: $10.24 billion). Taxation for the six months amounted to $3.87 billion, a 16% increase from the $3.33 billion reported in 2023.

Net Profit increased by 98% to $13.69 billion (2023: $6.91 billion). Net Profit for the quarter totalled $7.72 billion relative to the $4.70 billion booked in the prior year’s quarter.

Net Profit Attributable to Shareholders for the period totalled $8.65 billion, relative to the $4.58 billion reported twelve months prior. For the quarter, Net Profit Attributable to Shareholders amounted to $5.58 billion compared to the $3.20 billion reported in 2023.

Consequently, Earnings Per Share for the six months amounted to $3.40 (2023: EPS: $1.80), while Earnings Per Share for the quarter totaled $2.19 (2023: EPS: $1.26). The twelve-month trailing EPS was $4.58, and the number of shares used in these calculations was 2,545,325,512.

Notably, NCBFG’s stock price closed the trading period on May 9, 2024, at a price of $63.43 with a corresponding P/E ratio of 13.84x.

Balance Sheet Highlights

The company’s assets totalled $2.26 trillion (2023: $2.11 trillion). The increase resulted from a 9% uptick in Investment Securities closing at $833.27 billion.

Shareholder’s equity was $159.95 billion (2023: $138.23 billion), representing a book value per share of $62.84 (2023: $54.31).

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