It’s all for show, with no genuine generosity behind the act.

My narcissistic father partakes in this behavior a lot. Often, it involves grifting someone else to get money/items from them, only to then gift to someone else and take credit for it. My father would often scream and yell at me for not giving him thousands of dollars to go spend on his buddies to show off his “generosity.” A narcissist isn’t above scamming others, only to then make a big show of spending it on people they want to impress.