August 5, 2022

Net Interest Income decreased rose by 18%, relative to the corresponding period in 2021, to total $48.56 billion (2021: $41.29 billion). For the quarter, Net Interest Income improved 14% to close at $16.18 billion (2021: $14.19 billion).  Interest income year to date rose 11% year over year to $67.58 billion compared to $61.06 billion in 2021, while interest expense amounted to $19.02 billion relative to $19.76 billion for the corresponding period in 2021.

Net Fees and Commission Income amounted to $19.15 billion, an increase of 14% on 2021’s $16.86 billion. Net Fees and Commission Income for the quarter amounted to $6.19 billion (2021: $5.44 billion).

The NCBFG also reported a gain on foreign currency and investment activities of $7.02 billion, relative to $12.29 billion booked in 2021. Dividend income increased by 33% to a total of $2.02 billion (2021: $1.52 billion). Other Operating Income grew by 112% to $5.25 billion (2021: $3.96 billion). Credit impairment losses amounted to $1.87 billion (2021: $2.18 billion). As such, net results from banking and investment activities closed at $80.14 billion (2021: $73.75 billion).  Net results from banking and investment activities for the quarter amounted to $26.73 billion (2021: $27.16 billion).

Net underwriting income closed the period at $90.42 billion, 11% greater than the prior period, this is mainly due to a 11% increase in insurance premium income to $121.06 billion (2021: $109.43 billion). The quarter’s net underwriting income amounted to $26.87 billion (2021: $25.69 billion).

Net results from insurance activities for the period increased 41% to $25.48 billion (2021: $18.10 billion), this is primarily due to an increase in reinsurance on benefits and claims from $4.87 billion to $36.23 billion in 2022. Net result from insurance activities for the quarter amounted to $9.55 billion (2021: $4.94 billion). NCBFG highlighted that the performance was, “mainly due to strong performance from our life and health insurance segment as a result of improved net premium income.”

Consequently, net operating income increased 15% to a total of $105.62 billion (2021: $91.85 billion). Management noted that “the improvement was largely driven by increased net revenues from consumer & small and medium enterprises (SME), life & health insurance, treasury and payment services segments.” Net operating income for the third quarter recorded a 13% growth to $36.28 billion (2021: $32.09 billion).

Total Operating Expenses for the period amounted to $77.25 billion, an increase of 8% compared to the $71.58 billion reported for the nine months ended June 30, 2021. Expenses for the quarter rose 4% to close at $25.52 billion compared to $24.45 billion in 2021. Of these expenses:

Staff costs increased 9% to $37.52 billion relative to $34.55 billion in 2021, primarily due to the annual increases.

Other operating expenses grew by 11% to $31.99 billion (2021: $28.72 billion).

Finance cost increased to $1.53 billion (2021: $1.30 billion), while depreciation and amortization fell 11% to $6.21 billion (2021: $7.01 billion).

Consequently, operating profit increased 40% to total $28.37 billion (2021: $20.28 billion). ‘Share of profit of associates’ increased by 280% to total $642.74 million compared to $168.95 million in 2021. For the quarter, operating profit increased 41% to total $10.77 billion (2021: $7.65 billion).

Consequently, profit before taxation increased 42% to $29.01 billion relative to $20.44 billion in 2021.

After accounting for taxation of $3.13 billion (2021: $6.53 billion), net profit for the nine months totalled $25.88 billion, an increase of 86% compared to $13.91 billion for the corresponding period of 2021. Net profit for the quarter amounted to $10.60 billion (2021: $4.67 billion).

Net profit attributable to shareholders closed at $18.64 billion for the nine months relative to $9.91 billion in 2021. Net profit attributable to shareholders for the quarter amounted to $8.21 billion (2021: $4.02 billion).

Total comprehensive loss year to date amounted to $11.64 billion (2021 Total comprehensive income: $14.97 billion). While for the quarter, total comprehensive loss totaled $7.51 billion (2021 Total comprehensive income: $5.37 billion).

Earnings per share (EPS) for the nine months ended June 30, 2022 totalled $7.56 relative to $4.02 booked for the comparable period of 2021. The EPS for the third quarter amounted to $3.33 (2021: $1.63). The trailing twelve-month EPS amounted to $9.31. The number of shares used in our calculations amounted to 2,466,762,828 units. NCBFG stock price closed the trading period at a price of $95.28 on August 4, 2022, with a corresponding P/E of 10.23 times.

Balance Sheet at a glance:

Total Assets increased by 7% to $2.02 trillion as at June 30, 2022 from $1.89 trillion a year ago.  This increase stemmed mainly from the growth in ‘Investment Securities’ from $677.63 billion in 2021 to $724.84 billion, reflecting a $47.21 billion increase.

Shareholder’s Equity as at June 30, 2022 stood at $146.64 billion relative to $156.43 billion a year ago. This resulted in a book value per share of $59.45 (2021: $63.41).

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