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NCBA Group #ticker:NCBA plans to open 12 new branches in Kenya this year as part of its local and regional expansion.
The lender says the upcoming branches will help mobilise deposits and attract new customers, noting that a physical outlet in the neighbourhood is an important factor for customers when choosing a bank.
“The group intends to continue scaling up its branch network in 2022 by opening 12 new branches in Kenya and an additional two new branches in Rwanda, bringing our services closer to our customers,” the bank says in its latest annual report.
The new Kenyan branches will be located in Busia, Eastleigh, Kawangware, Kariobangi, Kenol, Kikuyu, Kitui, Muranga, River Road, Utawala, and Vipingo. They will add to 104 others spread across the region including Kenya, Uganda, and Rwanda.
Last year, the bank opened 13 new branches in Kenya in key strategic towns that ultimately contributed to an 11 percent growth of the group’s customer deposits. NCBA says the 13 branches are set to break even earlier than expected.
The bank also opened two new branches last year in Rwanda –at Nyabugogo and Kayonza— seeking to scale up retail banking and bring services closer to the customers. NCBA and Co-op Bank #ticker:COOP are the major lenders still opening new branches in the local market as rivals maintain or scale down their brick-and-mortar operations.
The institutions are going to areas where they have had no presence or where demand has necessitated the addition of more outlets. A branch is critical in recruiting new customers and collecting deposits from the local business community.
The banking sector overall has, however, slowed down on opening more branches as the lenders invest heavily in digital banking services.
NCBA made a net profit of Sh10.22 billion in the year ended December, up from Sh4.57 billion reported a year earlier. The performance was largely attributed to reduced impairment losses on customer loans and advances.
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Source: Business Daily Africa
