NCBA Group half-year profits rise 12.6 per cent to Sh11.1 billion on strong operational performance
The lender attributed the strong performance to operational excellence and prudent pricing strategies, achieved despite a challenging economic environment. Profit before tax grew by 11.4 per cent to Sh13.6 billion.
NCBA Group PLC has posted a 12.6 per cent rise in profit after tax for the first half of 2025, reaching Sh11.1 billion compared to Sh9.8 billion in the same period last year.
The lender attributed the strong performance to operational excellence and prudent pricing strategies, achieved despite a challenging economic environment. Profit before tax grew by 11.4 per cent to Sh13.6 billion.
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Operating income rose 12.7 per cent to Sh35.3 billion, reflecting stronger net interest income and tighter cost management. Operating expenses increased almost at the same pace, climbing 12.5 per cent year-on-year to Sh18.6 billion.
Provision for credit losses rose 19.1 per cent to Sh3.2 billion, signalling a cautious approach to credit risk. Digital lending continued to drive growth, with disbursements climbing 35 per cent to Sh646 billion.
However, customer deposits dropped six per cent to Sh497 billion, while total assets fell 3.8 per cent to Sh663 billion.
The board of directors recommended an interim dividend of Sh2.50 per share.
Group Managing Director John Gachora said the results highlight a rebound and renewed momentum in business performance.
“The income growth of 13 per cent was driven by a combination of operational excellence and prudent pricing management despite a challenging economic environment,” Gachora said.
“Our focus on maintaining high-quality assets and enhanced recoveries was evident with the NPL ratio of 11.9 per cent and cost of risk at 1.4 per cent. We maintained a capital adequacy ratio of 22.4 per cent, well above regulatory requirements and sufficient to meet our lending requirements and invest in strategic growth opportunities.”
Gachora further noted that, in line with NCBA’s mission to make customers’ lives easier, the bank’s local currency base lending rate has fallen by 4.02 per cent since August 2024, compared to a 3.50 per cent decline in the Central Bank Rate (CBR) over the same period.
The Kenyan subsidiary remained the Group’s main growth driver, delivering a 7.4 per cent year-on-year increase in profit before tax to Sh11 billion. This represented 81 per cent of Group profitability, supported by improved funding costs and a 32 per cent growth in Net Interest Income.
Regional operations also contributed strongly, posting a combined gross profit of Sh1.8 billion, equal to 13.6 per cent of Group profitability, mainly from recoveries. Non-banking subsidiaries added a further Sh804 million, accounting for 5.9 per cent of Group profitability, with a 40 per cent year-on-year increase.
The NCBA Investment Bank surpassed 50,000 clients through digital onboarding and cross-sell initiatives, with assets under management rising to Sh86 billion. Meanwhile, profitability in the insurance business grew 68 per cent year-on-year following its full acquisition, signalling a successful integration into the Group.
To enhance customer access, NCBA expanded its branch network to 122 across the region, with Kenya surpassing 100 branches following the opening of the Nord Ruiru branch.
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