BUSINESS

NCBA Group Pays Higher Dividend Despite Marginal Growth in Profit

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NCBA Group 2025 profit
NCBA Group Managing Director, John Gachora (second last) led the management in releasing the results.
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NCBA Group profit after tax of Ksh 23.4 billion in its full year 2025, which is a 7% increase from Ksh 21.9 billion reported during a similar period in 2024. The performance translates to an enhanced dividend payout of Ksh 11.7 billion up from Ksh 9.1 billion in 2024, underscoring the Group’s commitment to deliver attractive returns for its shareholders.

Commenting on the results, NCBA Group Managing Director, Mr John Gachora said the 2025 performance has hit milestones under its 2020 – 2025 strategy. “Over the last five years a disciplined execution of strategy and enhanced diversification of our business model have delivered a more robust institution with momentum to carry us forward,” Gachora said.

Subsidiary Performance

The Kenyan bank subsidiary remained the Group’s main profit engine, contributing 82% of PBT and growing PBT at a 27% CAGR since 2020 to Ksh 22.9 billion, enabled by balance sheet growth and margin managements. Regional banking subsidiaries also delivered a solid performance, generating Ksh 3.6 billion PBT (>100% CAGR vs 2020), contributing 13% to bottom line outcomes driven by balance sheet growth and lower impairment costs.

Non-banking subsidiaries (Investment Bank, Bancassurance, Leasing, and NCBA Insurance) posted a combined PBT of Ksh 1.9 billion (28% CAGR vs 2020), accounting for 5% of Group PBT. This was primarily led by the Investment Bank’s increased PBT of Ksh 995 million on the back of strong assets-under-management performance which has now crossed the KES 100 billion mark and NCBA Insurance’s 82% rise in PBT to Ksh 306 million given its first year as a fully integrated subsidiary of NCBA Group PLC.

Key Group Financial Performance

  • Profit before tax of KES 27.9 billion,10.9 per cent up year on year.
  • Profit after tax of KES 23.4 billion, 7.0 per cent up year on year.
  • Operating income of KES 73.3 billion,17.0 per cent up year on year.
  • Operating expenses of KES 37.5 billion,17.0 per cent up year on year.
  • Provision for credit losses was KES 8.0 billion, 46.3 per cent up year on year.
  • Digital Loans disbursed were KES 1.4 trillion, 33 per cent up year on year.
  • Customer deposits closed at KES 532 billion, 6.0 per cent up year on year.
  • Total Assets closed at KES 716 billion, 8.0 per cent up year on year.
  • Final dividend recommendation KES 7.10 per share (Total for 2025)

Building on the strong foundation established over the past six years, the Group is introducing its 2026–2030 Ubuntu strategy, anchored on the new organizational purpose: Banking on Belief – Empowering Ambitions.

The MD said there are opportunities ahead from proposed Nedbank acquisition of a 66% stake in NCBA The proposed transaction provides an opportunity to accelerate the Group’s strategic ambitions, he noted, while preserving a strong commitment to local markets and stakeholders.

> Most Kenyans Resort to Side Hustles to Make Ends Meet

Written by
BILL YAURA

Bill Yaura is a Correspondent for Business Today. He can be reached on email: [email protected]

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