NCBA Group PLC has reported a profit after tax of KES 5.5 billion for the first quarter of 2025, marking a 3.0% increase from KES 5.3 billion in Q1 2024. The growth comes despite prevailing economic challenges, with the Group citing strong performance across core income streams and strategic cost management initiatives.
Financial Highlights
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Digital loan disbursements soared to KES 307 billion, a 32% year-on-year increase.
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Profit before tax rose 4.5% to KES 6.8 billion.
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Operating income reached KES 17.3 billion, up 8% year-on-year.
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Operating expenses increased by 9% to KES 8.9 billion.
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Provision for credit losses rose by 20.3% to KES 1.6 billion.
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Customer deposits declined by 9.5% to KES 496 billion.
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Total assets fell by 5.6% to KES 656 billion.
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Group Managing Director John Gachora said 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%, up from 5.0% last year,” he said.
Strategic and Business Developments
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NCBA Bank Kenya remained the main profit driver, contributing 79% of Group PBT.
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Regional subsidiaries accounted for 16% of Group PBT with KES 1.1 billion, underscoring their growing strategic role.
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Non-banking subsidiaries delivered KES 328 million in consolidated profit (5% of Group PBT).
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 KES 309 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.
In customer-centric initiatives, NCBA:
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Reduced its lending rate in Kenya to 14.34% per annum.
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Continued waiving monthly account maintenance fees.
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Upgraded the NCBA NOW app with features for digital account opening and mobile payments.
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Enhanced CarDuka, its digital vehicle marketplace, with AI-powered user experiences and integrated insurance services.
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Improved the ConnectPlus online platform for SMEs and corporates, offering faster transactions and expanded functionalities.
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Sustainability and Impact
Under its Change The Story sustainability program, NCBA:
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Renewed a KES 3 billion, 10-year facility with the African Guarantee Fund.
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Planted over 62,000 trees in 30 locations.
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Installed a 6th EV charging station in Uganda.
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Invested KES 12 million in scholarships, supporting 181 students.
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Relaunched a mentorship program impacting 800 learners.
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Reached 94,000+ individuals through financial wellness initiatives.
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Created 3,510+ jobs and impacted over 271,000 livelihoods.
Recognition and Awards
NCBA received multiple honors in Q1, including:
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Named among the Top 25 ESG-driven Corporations by Business Monthly EA.
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Awarded for Excellence in ESG and Leadership at the DIAR Awards.
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Ranked second in Customer Experience by the 2024 KBA Satisfaction Survey.
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Recognized for Excellence in Asset Finance by the International Center for Strategic Alliances.
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Second-best participating bank in the Tanzania Institute of Bankers’ 2024 training programs.
Outlook
Looking ahead, Mr. Gachora highlighted cautious optimism amid global economic uncertainty. “While global growth is now projected at 2.8% in 2025, down from 3.3%, Kenya remains resilient. We are optimistic that the easing monetary policy will spur private sector growth and consumer confidence.”
“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,” he concluded.
