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).

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