NCBA clear losses, records 11.5bn/- profit in H1

Basic earnings per share also improved to 84/- per share during the first six months of this year, compared with a loss of 574/- recorded during the first half of last year.

The bank’s Managing Director Claver Serumaga told The Guardian yesterday that the attainment of profit resulted from consistent implementation of the turnaround strategy referred to as the Targeted Operating Model (TOM) which focusses on 360 degrees support to corporate clients along with their value chains of SME suppliers.

“The bank was also aggressive on bad debt recoveries, as well as improving staff welfare to improve productivity,” he said.

During the first half of this year, the bank managed to recover 3.8bn/- bad debt, of which 1.08bn/- recovered during the second quarter.

Unaudited quarterly financial statement for the quarter ended in June shows both interest and non-interest incomes increased during the period reported, with operating income turned positive to 5.4bn/- from a loss of 13.4bn/- respectively.

Net interest income increased by nearly a third to 17.98bn/- during the first six months of this year, compared with 13.80bn/- during the first half of last year, while non-interest income grew to 6.1bn/- compared to 4.7bn/- respectively.

The increase of non-interest income resulted from the growth of  foreign currency dealing and transaction gains, which nearly doubled to 2.6bn/- compared with 1.4bn/- respectively ad slight increase of fees and commission to 3.5bn/- from 3.3bn/-.

Return on average total assets improved positively to 4.7 percent during H1, 2023 compared with -6.8 percent during similar period of last year, while return on average shareholder funds improved to 42.6 percent compared to -66.8 percent respectively.

The bank’s capital went up by nearly 13 percent to 57.4bn/- during the second quarter of this year, compared to 50.1bn/- recorded during the first quarter of this year.

Total assets amounted to 478.7bn/- during the second quarter of this year, from 499.1bn/- during the first quarter mainly due decrease in specific customer deposits (Cash letters of Credit).

Loan issuance decreased to 237.1bn/- during the second quarter of this year from 245.5bn/- during the first quarter, while interbank loans receivable slowed to 76.6bn/- compared with 82.2bn/-.

The financial statement shows liabilities also went down to 421bn/- from 449bn/- respectively due to decreased accrued taxes and expanses payables and other liabilities.

Customer deposits slightly increased to 239.6bn/- during the second quarter of this year, compared to 231.6bn/- during the first quarter, while special deposits increased to 83.3bn/- compared with 81.5bn/- respectively.