NCBA Group PLC has reported a profit after tax of Sh5.5 billion for the first quarter of 2025. This net profit in Q1 2025  was a 3 percent increase from the Sh5.3 billion that the bank had realized in the in Q1 2024. This growth was driven by a surge in digital lending which saw digital loan disbursements soar to Sh307 billion, a 32 percent year-on-year increase.

In the period under review, operating income reached Sh17.3 billion. This was an 8 percent year-on-year growth. Operating expenses on the other hand increased by 9 percent to Sh8.9 billion. Provision for credit losses rose by 20.3 percent to Sh1.6 billion.

At the same time, customer deposits declined by 9.5 percent to Sh496 billion while total assets fell by 5.6 percent to Sh656 billion.

According to NCBA Group Managing Director John Gachora, the results reflect the resilience of NCBA’s core business and a deliberate shift towards optimizing funding and asset allocation.

“Despite the headwinds of 2025, our performance underscores strong fundamentals and effective risk management. Improved cost of funds management has enhanced our net interest margin to 6.1 percent, up from 5 percent last year,” he said.

In the period under review, NCBA Bank Kenya remained the main profit driver, contributing 79 percent of the Group’s profit before tax. Regional subsidiaries on the other hand accounted for 16 percent of Group profit before tax with Sh1.1 billion. Non-banking subsidiaries delivered Sh328 million in consolidated profit which was equivalent to 5 percent of the Group’s profit before tax. 

In a significant move, the Group completed the integration of AIG Kenya Insurance, rebranding it to NCBA Insurance. This aligns with NCBA’s ambition to capture a larger share of Kenya’s Sh309 billion insurance market. NCBA Investment Bank was selected by FSD Ethiopia to train participants in the Ethiopia Stock Exchange, reinforcing its regional leadership in investment banking.

The Group also continued expanding its branch network, hitting 100 branches in Kenya with the opening of new outlets in Tatu City and Nord Mall, Ruiru. A new agency branch in Nyagatare, Rwanda, brings the total regional network to 121 branches.

“While global growth is now projected at 2.8 percent in 2025, down from 3.3 percent, Kenya remains resilient. We are optimistic that the easing monetary policy will spur private sector growth and consumer confidence,” said Mr. Gachora.

“NCBA remains committed to building a future-ready institution driven by innovation, inclusivity, and sustainable growth. Our goal is to continue delivering shareholder value while making a lasting impact on communities across the region.”

The bank continued with its sustainability program under its ‘Change The Story’, with a renewed Sh3 billion 10-year facility with the African Guarantee Fund. The bank also saw the planting of over 62,000 trees in 30 locations and the installation of the 6th EV charging station in Uganda.

At the same time, NCBA invested Sh12 million in scholarships, supporting 181 students, and relaunched a mentorship program impacting 800 learners. The Group reached over 94,000 individuals through financial wellness initiatives and created over 3,510 jobs and impacted over 271,000 livelihoods.

Monthly fees, benefits and features of NCBA business accounts for entrepreneurs

Here are key NCBA performance takeaways from the quarter under review

• Reduced its lending rate in Kenya to 14.34 percent per annum.

• Continued waiving monthly account maintenance fees.

• Upgraded the NCBA NOW app with features for digital account opening and mobile payments.

• Enhanced CarDuka, its digital vehicle marketplace, with AI-powered user experiences and integrated insurance services.

• Improved the ConnectPlus online platform for SMEs and corporates, offering faster transactions and expanded functionalities.