August 10, 2023
NCB Financial Group Limited (NCBFG) for the nine months ended June 30, 2023 reported a 17% increase in interest income totaling $79.40 billion compared to $67.58 billion in the corresponding period last year. Interest Income for the third quarter had a 19% increase to close at $27.42 billion compared to $23.07 billion for the comparable quarter of 2022.
Interest Expense amounted to $27.53 billion (2022: 19.02 billion), this represents an increase of 45% year over year. Consequently, net interest income increased by 7% to $51.87 billion compared to $48.57 billion for the nine months ended June 30, 2022. The company booked net interest income of $17.49 billion for the third quarter versus $16.18 billion reported for the similar quarter of 2022.
Net fee and commission income increased by 11% to close at $21.28 billion (2022: $19.15 billion), while net results from banking and investment activities increased by 6% from $80.14 billion in 2022 to $84.89 billion in the period under review. Net revenues from insurance activities for the nine months ended June 30, 2023 amounted to $11.92 billion, a 53% decrease relative to $25.48 billion reported in 2022.
Notably, Net insurance benefits and claims rose to $65.71 billion year to date compared to $52.36 billion for the prior year’s corresponding period. For the quarter, Net insurance benefits and claims closed at $22.68 billion (2022: $13.46 billion). Commission and other expenses also recorded an increase to $14.07 billion (2022: $12.58 billion).
Net operating income for the nine months ended June 30, 2023, amounted to $96.81 billion, an 8% decrease relative to $105.62 billion reported in 2022. Net operating income for the third quarter amounted to 35.60 billion (2022: $36.28 billion). Total operating expenses totalled $78.90 billion a 2% increase from the corresponding period last year. (2022: $77.25 billion).
Operating Profit for the nine months ended June 30, 2023, amounted to $17.90 billion, a 37% decrease relative to $28.37 billion reported in 2022. Operating Profit for the third quarter amounted to 8.09 billion (2022: $10.76 billion).
Profit before taxation for the nine months ended June 30, 2023 had a 37% decrease to reach $18.14 billion (2022: $29.01 billion) . Taxation for the nine months amounted to $4.41 billion, a 41% increase from the $3.13 billion reported in 2022. For the third quarter, profit before tax amounted to $8.16 billion relative to $10.92 billion in 2022.
Net Profit decreased by 47% to $13.73 billion (2022: $25.88 billion). Net Profit for the quarter totalled $7.39 billion relative to the $10.59 billion booked in the prior year’s quarter.
Net Profit Attributable to Shareholders for the period totalled $9.71 billion, a 48% decrease relative to the $18.64 billion reported twelve prior. For the quarter, Net Profit Attributable to Shareholders amounted to $5.48 billion, down 33% compared to the $8.21 billion reported in 2022.
Consequently, Earnings Per Share for the nine months amounted to $3.94 (2022: EPS: $7.56), while Earnings Per Share for the quarter totaled $2.22 (2022: EPS: $3.33). The twelve month trailing EPS was $7.45 and the number of shares used in these calculations was 2,466,762,828.
Notably, NCBFG’s stock price closed the trading period on August 9, 2023 at a price of $74.16 with a corresponding P/E ratio of 9.95x.
Balance Sheet Highlights
The company’s assets increased by 10% totalling $2.22 trillion (2022: $2.02 trillion). This increase in assets was mainily driven by improvements in “Investment Securities” and “ Pledged Assets” totalling $809.96 billion (2022: $724.84 billion) and $302.75 billion (2022: 205.38 billion) respectively.
Total Shareholder’s equity attributable to shareholders was $183.94 billion (2022: $146.64 billion), representing a book value per share of $74.57 (2022: $59.45).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
