NCBA Group PLC has posted a notable improvement in its financial performance for the first half of 2025, with profit after tax rising by 12.6 per cent to Ksh 11.1 billion, up from Ksh 9.8 billion during the same period last year.
The growth is credited to stronger operational efficiency and careful pricing strategies, achieved despite a challenging economic environment.
Profit before tax increased by 11.4 per cent to Ksh 13.6 billion, while operating income grew by 12.7 per cent to Ksh 35.3 billion, reflecting higher net interest income and effective cost management.
Operating expenses rose by 12.5 per cent to Ksh 18.6 billion, and provisions for credit losses increased by 19.1 per cent to Ksh 3.2 billion, showing the bank’s cautious approach to credit risk. Digital lending continued to drive growth, with disbursements climbing 35 per cent to Ksh 646 billion.
Customer deposits, however, fell by six per cent to Ksh 497 billion, while total assets decreased by 3.8 per cent to Ksh 663 billion. The board of directors recommended an interim dividend of Ksh 2.50 per share.
Group Managing Director John Gachora said the results show a rebound and renewed momentum in business performance.
He noted that income growth of 13 per cent was driven by operational excellence and prudent pricing management. Gachora emphasised that the bank maintained high-quality assets and improved recoveries, with a non-performing loan ratio of 11.9 per cent and a cost of risk at 1.4 per cent.
The capital adequacy ratio stood at 22.4 per cent, comfortably above regulatory requirements.
The Kenyan subsidiary remained the main growth driver, posting a 7.4 per cent year-on-year increase in profit before tax to Ksh 11 billion, accounting for 81 per cent of the group’s profitability.
Regional operations contributed a combined gross profit of Ksh 1.8 billion, or 13.6 per cent of group profitability, mainly from recoveries. Non-banking subsidiaries added Ksh 804 million, representing 5.9 per cent of group profits, with a 40 per cent year-on-year increase.
NCBA Investment Bank also saw strong growth, surpassing 50,000 clients through digital onboarding and cross-sell initiatives, with assets under management rising to Ksh 86 billion.
Profitability in the insurance business surged 68 per cent following full acquisition, highlighting successful integration into the group.
To improve customer access, NCBA expanded its branch network to 122 across the region, with Kenya alone exceeding 100 branches after opening the Nord Ruiru branch.
The bank’s results underscore its resilience and focus on digital transformation, regional expansion, and asset quality. NCBA continues to position itself for sustainable growth, adapting to changing market conditions while strengthening its presence across East Africa.
Leave a comment