November 10, 2022
NCB Financial Group Limited (NCBFG), for the year ended September 30, 2022, booked a 22% increase in net interest income to total $59.20 billion relative to the $48.63 billion booked the corresponding period in 2021. For the fourth quarter ended September 30, 2022, net interest income fell 15% to close at $13.26 billion (2021: $15.68 billion). Interest income, for the period under review, rose to $84.92 billion compared to $74.57 billion in 2021, while interest expense amounted to $25.72 billion relative to $25.95 billion for the corresponding period in 2021.
Net fees and commission income amounted to $26.13 billion, an increase of 16% compared with the $22.49 billion booked for the year ended September 30, 2021. For the quarter, net fees and commission income improved 24% to close at $6.99 billion (2021: $5.63 billion).
Dividend income increased by 8% to a total of $2.50 billion (2021: $2.32 billion). Other operating income rose 6% to $5.61 billion (2021: $5.28 billion), while credit impairment losses decreased 20% to $2.72 billion in contrast to $3.39 billion recorded for 2021. Lastly, the Company’s gain on foreign currency and investment activities fell 27% to $16.58 billion compared to $22.83 billion reported in the corresponding period in 2021.
Consequently, NCBFG’s net results from banking and investment activities, for the year ended September 30, 2022, climbed 9% to a total of $107.29 billion (2021: $98.15 billion). Meanwhile, for the fourth quarter ended September 31, 2022, Net results from banking and investment activities climbed 11% to a total of $27.15 billion (2021: $24.40 billion).
Net results from insurance activities for the year ended September 30, 2022 rose by 84% to $42.30 billion (2021: $22.95 billion). Of this, insurance premium income rose 10% to $164.69 billion (2021: $150.04 billion), while reinsurance commission income grew to $9.80 billion (2021: $8.78 billion). Insurance premium ceded to insurers amounted to $50.58 billion (2021: $48.58 billion), while insurance benefits and claims amounted to $113.57 billion (2021: $77.28 billion), respectively. Commission and other selling expenses ended at $16.706 billion compared to $16.713 billion in 2021. Net results from insurance activities for the fourth quarter ended September 30, 2022 grew by 247% to $16.83 billion (2021: $4.85 billion).
Total operating expenses for the year amounted to $104.46 billion, an increase of 10% compared to the $94.85 billion reported for the year ended September 30, 2021. Management noted the increase was due, “primarily to the annual negotiated increases coupled with increased redundancy costs and incentive payments.” “Technical consultancy and professional fees as well as infrastructure maintenance costs increased to support the Group’s digital agenda. Investments in technological capabilities continu as we enhance our ability to deliver digital solutions that will transform the customer experience and how we do business as a Group.” Expenses for the quarter rose 17% to close at $27.21 billion compared to $23.27 billion in 2021. Of these expenses, for the year ended September 31, 2022.
- Staff costs increased 10% to $49.11 billion relative to $44.50 billion in 2021.
- Other operating expenses grew by 17% to $44.41 billion (2021: $39.20 billion).
- Finance cost amounted to $2.05 billion (2021: $1.84 billion).
- Depreciation and amortization fell 4% to $8.89 billion (2021: $9.31 billion).
Notwithstanding, operating profit for the year ended September 30, 2022, rose 72% to total $45.14 billion (2021: $26.26 billion). Meanwhile, for the quarter ended September 30, 2022, operating profit increased 180% to total $16.77 billion (2021: $5.98 billion).
Share of profit of associate, for the year ended September 30, 2022, amounted to $732.51 million, up from 2021’s $340.29 million.
Consequently, profit before taxation for the year ended September 30, 2022, rose 72% to $45.87 billion relative to $26.60 billion in 2021. The Group booked a taxation charge of $5.95 billion for the year ended September 30, 2022 relative to a taxation charge of $6.52 billion in the corresponding period of 2021. As such, net profit for the year ended September 31, 2022, rose by approximately 99% to $39.92 billion (2021: $20.08 billion).. Net profit for the quarter closed at $14.04 billion (2021: $6.16 billion), representing a 128% increase.
Net profit attributable to shareholders closed at $27.32 billion for the year ended September 30, 2022 relative to $14.23 billion in 2021. Net profit attributable to shareholders for the quarter amounted to $8.68 billion (2021: $4.32 billion).
Total Comprehensive loss for the year amounted to $7.64 billion relative to an income of $20.35 billion for the same period in 2021. For the quarter, total comprehensive loss closed at $4 billion versus an income of $5.37 billion for the corresponding quarter of 2021.
Earnings per share (EPS) for the year totaled $11.07 relative to $5.77 booked for the comparable period of 2021. The EPS for the fourth quarter amounted to $3.52 (2021: $1.75). 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 $84.60 on November 10, 2022 with a corresponding P/E of 7.64x.
Balance Sheet at a glance:
Total Assets increased to $2.06 trillion as at September 31, 2022 relative to $1.85 trillion booked as at September 31, 2021. This increase stemmed mainly from the growth in ‘Investment securities’ and ‘Loans and Advances’ which closed at $711.73 billion (2021: $683.86 billion) and $580.99 billion (2021: $523.49 billion), respectively. Management noted, “The growth in the asset base continues to be bolstered by increased net loans, investment securities and amounts due from banks. The year over year growth was primarily funded by increased deposits, repurchase agreements, other borrowed funds, and liabilities under annuity and insurance contracts.”
‘Equity attributable to shareholders of the parent’ as at September 30, 2022 stood at $149.53 billion relative to $161.46 billion as at September 30, 2021. This resulted in book value per share of $60.62 (2021: $65.45).
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