NCBA Group has posted a profit after tax of Sh11.1 billion for the first half of 2025, representing a 12.6 percent growth compared to the Sh9.8 billion reported during a similar period in 2024.
The strong performance was on the back of operational excellence and prudent pricing strategies, achieved by the lender amid macroeconomic shocks.
“I’m pleased to announce our H1 2025 financial results which highlight a rebound and positive momentum on 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,” NCBA Group Managing Director John Gachora remarked.
Profit before tax grew by 11.4 per cent to Sh13.6 billion, with operating income reaching Sh35.3 billion, a 12.7 percent year-on-year growth.
At the same time, operating expenses increased 12.5 percent year-on-year to Sh18.6 billion while provision for credit losses rose 19.1 percent to Sh3.2 billion.
Digital lending continued to drive growth, with disbursements climbing 35 percent to Sh646 billion. However, customer deposits dropped six percent to Sh497 billion, while total assets fell 3.8 percent to Sh663 billion.
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“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.”
The Kenyan subsidiary remained the group’s main growth driver, recording a notable year-over-year profit before tax growth of 7.4 percent to Sh11 billion.
This was a contribution of 81 percent to the overall Group profitability driven by improved cost of funding and better Net Interest Income, which grew 32 percent.
The Regional businesses delivered a strong performance driven by recoveries with a combined profit before tax of Sh1.8 billion, contributing 13.6 percent to Group profitability.
NCBA non-banking subsidiaries recorded a combined profit before tax of Sh804 million, contributing 5.9 percent of Group profitability and growing 40 percent year over year.
Notably, the NCBA Investment Bank surpassed 50,000 clients through digital onboarding and cross-sell wins, with assets under management growing to Sh86 billion.
The lender’s Insurance business profitability grew 68 percent year on year post full acquisition signaling successful integration into the Group.
The Group`s strong performance enabled the Board of Directors to recommend an interim dividend declaration of Sh2.50 per share.
