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NCBA Bank Uganda posted an 18.4% growth in net profit for the 12 months ended December 2023⏤ a UGX4.3 billion growth from the UGX22.8 billion it posted in 2022, to UGX27 billion in 2023.
This is the second successive net profit by the bank since Mark Muyobo assumed its leadership, ending two years of successive post-merger losses.
The 2023 growth in net profit was fuelled by a 15.4% growth in customer deposits- from UGX491.3 billion in 2022 to UGX567.1 billion in 2023.
The bank also jerked up its lending by 20.1%, from UGX210.6 billion to UGX253 billion.
With increased lending, the bank’s total income went up by 14.6% from UGX99.7 billion to UGX114.3 billion.
Rising total income drove a rise in net profit from UGX22.8 billion to UGX27 billion.
Commenting about the results, Mark Muyobo, the Chief Executive Officer, said that the bank continued executing its purpose of inspiring greatness to its customers “with our integrated business model centred on the corporate customer ecosystem through providing solutions along the value chain”.
He specifically singled out the bank’s partnership with MTN Mobile Money (MTN MoMo) through which the bank extends microloans to millions of Ugandans via the phone.
“Through our digital lending business of MOKASH, we have elevated Financial inclusion in the Ugandan market through easing access to short-term credit to the unbanked and providing a savings platform to over 10 million of our clients. Our running strategic partnership with MTN gives us the flexibility to make banking services more accessible to the underbanked population and we remain committed to growing this offering,” Mr. Muyobo said.
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2022 Growth (bns) | 2022 Growth (%) | 3-year CGAR | |
| Customer Deposits | 127.3 | 98.7 | 114.4 | 150.4 | 369.3 | 396.8 | 566.8 | 491.3 | 567.1 | 75.8 | 15.4% | 0.03% |
| Loans & Advances | 127.3 | 98.7 | 121.6 | 143.7 | 281.7 | 268.7 | 218.8 | 210.6 | 253 | 42.4 | 20.1% | 7.5% |
| Total Income | 85.7 | 85.7 | 99.7 | 114.3 | 14.6 | 14.6% | 15.5% | |||||
| PAT | 0.7 | 0.6 | 0.6 | -4.0 | 3.0 | -3.8 | -14.8 | 22.8 | 27 | 4.2 | 18.4% | |
| Assets | 203.4 | 165.9 | 218.7 | 273.5 | 535.7 | 558.0 | 719.7 | 741.2 | 854 | 112.8 | 15.2% | 8.9% |
He also said that in 2024, the bank would remain focused on strategy despite the uncertain macroeconomic environment.
“As a Bank, we have positioned ourselves as a strong regional financial institution distinguished for customer experience to provide solutions that inspire our customers’ growth,” he reiterated.
As at the end of Q1 2024, the Group had assets of KES695 billion (USD5.4 billion), 10.5 per cent up year on year. The Group was also recently named as the 85th most valuable brand in Africa by Brand Finance.
The northward 2023 results further steady NCBA Bank Uganda’s post-merger growth, following a rocky first two years.
NCBA Bank Uganda was formed as a result of a merger between two East African financial groups ⏤ NIC Bank and Commercial Bank of Africa (CBA). The merger was first announced on 6th December 2018 in Kenya where the two banks were headquartered. In April 2019, shareholders of both banks approved the merger and in September 2019, the Central Bank of Kenya and the Kenyan National Treasury approved the merger to create NCBA Group.
In Uganda the merger got a green light from the Bank of Uganda in June 2020, creating a UGX548 billion in assets bank, as of March 31st 2020.
Anthony Ndegwa, hitherto the Chief Executive of CBA became the Managing Director of the new entity, while Mark Muyobo, previously the Executive Director of NIC Bank became the NCBA Bank Uganda’s Executive Director.
Ndegwa was in December 2021 reassigned to the Group office as Director of Regional Business Development. Muyobo became the Acting Chief Executive until June 2022 when he was made the substantive Chief Executive.
In the first two years of the merger, the new entity made a loss of UGX3.8 billion and UGX14.8 billion in 2020 and 2021.
This has since been reversed under Mark Muyobo.
During these two years, the bank has also posted a compounded annual growth rate (CAGR) in assets of 9% from UGX720 billion in 2021 to UGX854 billion in 2023. This is on the back of an 8% CAGR in lending ⏤ from UGX241 billion to UGX283 billion.
The bank has also registered a 56% CAGR reduction in loan impairments from UGX47 billion in 2021 to UGX4 billion in 2023.
Total equity has grown by a CAGR of 29%, from UGX108 billion in 2021 to UGX180 billion in 2023.
Who is Mark Anthony Muyobo?
Mark Muyobo, is a Ugandan banker with over 20 years of experience in the Financial and Audit Services sector. He joined NC Bank as Executive Director from ABSA Bank Uganda (formerly Barclays Bank) where he held several executive positions both in Uganda and South Africa.
Prior to this, he worked with ABSA Capital in South Africa, DFCU Bank and KPMG.
After the merger of NC Bank and CBA Bank in June 2020, he was appointed to be the Executive Director, of Corporate & Structure Solutions, a position he held until 15th December 2021 when he was appointed Ag. Managing Director. He was confirmed as Managing Director of NCBA Bank Uganda in June 2022.
He is a graduate of the Sunwords Fast Forward Leadership programme, the CEO Apprenticeship programme and Harvard Manage Mentor.
He holds a Master’s Degree in Business Administration from Heriot-Watt University United Kingdom, is a Fellow of the Association of Chartered Certified Accountants (FCCA), a Bachelor’s Degree of Business Administration from Ndejje University and an Advanced Diploma in Corporate Lending from the ifs School of Finance, London.