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NCBA injects Sh3.5 billion into subsidiaries and fully acquires the Tanzanian unit
Friday 07 April 2023
NCBA’s home on Upper Hill in Nairobi. file image | Abel Evans | NMG
The NCBA Group invested an additional Sh3.47 billion in its regional subsidiaries in the year to December as it sought to increase its share of profits from outside Kenya.
In its latest disclosures, the lender said the value of its subsidiary investment amounted to Sh74.08 billion from Sh70.61 billion in the previous year, with the Tanzanian unit accounting for more than half of the capital injection.
The NCBA Group says it has invested Sh2 billion in NCBA Bank in Tanzania in its purchase of the 6.56 per cent stake that was in the hands of minority shareholders.
is reading: NCBA invests Sh2 billion in its Tanzania subsidiary
“The group acquired a minority stake, increasing ownership of the group to 100 percent,” says the National Basketball Association in the annual report.
The NCBA increased its stake in the Tanzanian unit from 75.91 percent in 2019 to 93.44 percent in 2021 to the current full ownership.
In its subsidiaries in Uganda and Rwanda, the lender injected Sh814m and Sh458m, respectively, and another Sh200m investment in Kenya’s Loop DFS, formerly Bantech Limited.
Recent investments have come to Sh6.98 billion, the amount the NCBA Group has invested in subsidiaries since 2019.
The General Bank ended valuation of its investments in Tanzania at Sh7.08 billion, and Uganda and Rwanda units at Sh4.94 billion and Sh3.33 billion respectively.
In 2021, it invested Sh2.33 billion, up from Sh860.3 million in 2020 and Sh312.97 million the year before.
The additional capital injection raised the investment value of the three subsidiaries to Sh12.05 billion, with Tanzania topping Sh5.08 billion.
Net profit
During the review period, net losses from subsidiaries fell from Sh1.56 billion to Sh545 million, with only the Tanzanian unit remaining in the red. The subsidiary expanded its net loss from Sh1.16 billion to Sh1.78 billion.
The Ugandan unit rebounded from a loss of Sh483.24 million to a net profit of Sh767.6 million, while the Rwanda business net profit improved from Sh83.4 million to Sh467.1 million.
The Kenyan unit saw its net profit jump from Sh11.8 billion to Sh14.32 billion.
The NCBA Group’s board of directors increased its dividend for the second consecutive year after net profit grew by 35% to Sh13.78 billion.
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