February 13, 2025

NCB Financial Group Limited (NCBFG)

Unaudited financials for the first quarter ended December 31, 2024:

NCB Financial Group Limited (NCBFG) for the first quarter ended December 31, 2024, reported a 9% increase in interest income totalling $32.04 billion compared to $29.37 billion in the corresponding three months last year.

Interest expense amounted to $12.04 billion (2023: $11.44 billion), this represents an increase of 5% year over year. Consequently, net interest income increased by 12% to $20.01 billion compared to $17.93 billion for the first quarter ended December 31, 2023.

Net fee and commission income decreased by 1% to close at $7.68 billion (2023: $7.71 billion). As a result, Net result from banking and investment activities increased by 9% from $31.16 billion in 2023 to $33.91 billion for the three months. Also, Net revenues from insurance activities for the first quarter amounted to $1.26 billion, a 1344% increase relative to $87.00 million reported in 2023.

Consequently, Net operating income for the three months amounted to $35.17 billion, a 13% increase relative to $31.25 billion reported in 2023. NCBFG highlighted, “The higher performance resulted in improved key performance indicators relative to the prior year. ROA increased from 0.54% to 0.89%, ROE grew to 6.17% from 3.27%, and the efficiency ratio improved from 81.44% to 73.57%.”

Total operating expenses totalled $27.74 billion a 6% increase from the corresponding period last year. (2023: $26.17 billion).

Operating Profit for the first quarter ended December 31, 2024, amounted to $7.43 billion, a 46% increase relative to $5.09 billion reported in 2023.

Profit before Taxation for the three months had a 49% increase to reach $7.66 billion (2023: $5.13 billion).

Taxation for the three months amounted to $2.44 billion, a 13% increase from the $2.16 billion reported in 2023. As such, Net Profit increased by 76% to $5.22 billion (2023: $2.97 billion).

Net Profit Attributable to Shareholders for the first quarter totalled $2.63 billion, relative to the $1.23 billion reported twelve months prior.

Consequently, Earnings Per Share for the three months amounted to $1.02 (2023: EPS: $0.47). The twelve-month trailing EPS was $5.70, and the number of shares used in these calculations was 2,584,069,847.

Notably, NCBFG’s stock price closed the trading period on February 12, 2025, at a price of $49.93 with a corresponding P/E ratio of 8.75x.

Balance Sheet Highlights

The company’s assets totalled $2.29 trillion (2023: $2.21 trillion). The growth in total assets was mainly due to increases in the company’s Cash balance and Investment securities portfolio by $33.24 billion and $61.20 billion, respectively.

Shareholder’s equity was $168.17 billion (2023: $157.98 billion), representing a book value per share of $65.08 (2023: $61.14).

Disclaimer: 

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.