NCBA Bank Uganda is celebrating a banner year, reporting a 17% jump in net profits to Shs27 billion for the fiscal year 2023. This impressive growth is fueled by a focus on building a strong performance culture and leveraging the power of digital banking.
The bank saw a surge in customer deposits, with total assets also rising by 9%. This translates to more resources available for lending, as gross loans and advances grew by 8%. NCBA credits its success partly to its digital lending arm, Mokash, which has expanded access to financial services for millions of Ugandans.
"Through Mokash, we've made a significant impact on financial inclusion," said Patrick Muyobo, the bank's CEO. "We've provided short-term credit and savings opportunities to over 10 million clients, many of whom were previously unbanked."
Beyond customer growth, NCBA also demonstrated strong financial management. They achieved a 56% reduction in impairments and kept operational costs under control. This focus on efficiency translated to a healthy 14% increase in total income.
Looking ahead, Muyobo remains optimistic. "With a solid foundation and a commitment to innovation, NCBA Bank Uganda is positioned to capitalize on new opportunities and drive sustainable growth," he said. The bank plans to leverage its digital capabilities and maintain a customer-centric approach to achieve this goal.
NCBA's success is further bolstered by a recent capital injection from its Kenyan parent company. This investment signifies the group's confidence in the Ugandan market and its commitment to regional expansion. The Ugandan economy itself is also showing positive signs, with inflation dropping and private sector credit rising.
Finally, NCBA is taking steps towards environmental responsibility. According to Muyobo, the bank plans to increase its focus on sustainability reporting and green investments in the coming year.
This positive performance by NCBA Bank Uganda is a promising sign for the Ugandan financial sector and the country's overall economic health. By embracing digital solutions and prioritizing both profitability and sustainability, NCBA is well-positioned for continued success.