NCBA Group has reported a 12.2 per cent increase in half-year net profit, buoyed by strong growth in operating income, customer deposits and continued investment in technology.
The lender has reported a profit after tax of Sh12.4 billion for the six months ended June 30, 2026, up from the corresponding period last year.
Profit before tax rose 14.3 per cent to Sh15.5 billion, while operating income climbed 15.1 per cent to Sh40.7 billion.
The board declared an interim dividend of Sh3.75 per share, an increase from Sh2.50 paid during the first half of 2025, signalling confidence in the bank’s earnings outlook.
During the review period, NCBA’s balance sheet expanded, with total assets rising 11.5 per cent to Sh739 billion while customer deposits increased by 11 per cent to Sh551 billion, reflecting sustained customer confidence.
Operating expenses grew at a slower pace of 5.1 per cent to Sh19.5 billion, supporting improved profitability.
Digital lending remained one of the group’s strongest growth engines, with loan disbursements surging 26.9 per cent to Sh819 billion as customers increasingly embraced digital borrowing channels.
The lender, however, raised provisions for expected credit losses to Sh5.2 billion, compared with Sh3.2 billion in the same period last year.
UBUNTU strategy drives performance
Commenting on the performance, NCBA Group Managing Director John Gachora attributed the performance to disciplined execution of the lender’s UBUNTU strategy, which he said continued delivering results despite inflationary pressures and cautious monetary policies across the region.
He said improved business volumes, wider interest margins and sustained customer activity supported strong income growth across the group.
NCBA’s non-performing loan ratio stood at 10.5 per cent, remaining well below the Kenyan banking industry’s average of 15.3 per cent, reflecting prudent credit risk management.
The lender also maintained a return on average equity of 19 per cent and a capital adequacy ratio of 21.7 per cent, providing sufficient capacity to finance future expansion and investments.
Kenya remains largest earnings contributor
The Kenyan banking subsidiary continued to anchor the group’s performance, with profit growing 24.3 per cent year-on-year to Sh13.7 billion.
Regional subsidiaries in Uganda, Tanzania and Rwanda collectively generated Sh1.6 billion in profit, supported by a 25 per cent increase in lending, 11 per cent income growth and improved loan recoveries.
Non-banking subsidiaries, including investment banking, leasing, bancassurance and insurance, also posted strong growth, recording a combined profit of Sh1.1 billion, representing a 40 per cent increase compared with the first half of 2025.
Investment in technology accelerates digital transformation
NCBA invested Sh2.4 billion in technology infrastructure during the period as part of its digital transformation strategy focused on artificial intelligence, cyber security and strengthening core banking systems.
The investment delivered system uptime of 99.68 per cent, while the bank recorded a digital Net Promoter Score of 69 per cent and expanded its ConnectPlus business banking platform across regional markets.
Digital channels continued to dominate customer engagement, accounting for 94 per cent of all transactions processed by the bank.
Wealth management, insurance and SME financing expand
The group continued growing its non-interest income businesses and customer offerings.
Assets under management rose to Sh101 billion, with active wealth management clients surpassing 60,000.
Within the insurance business, NCBA Insurance recorded gross written premiums of Sh2.1 billion, while bancassurance premiums increased to Sh2.3 billion.
The lender also expanded financing to small and medium-sized enterprises, growing its SME loan book by 12 per cent to Sh44.7 billion from Sh39.9 billion a year earlier.
Asset finance and retail banking support customer acquisition
NCBA strengthened its position in asset finance through partnerships supporting electric vehicle financing and solar leasing, reinforcing its estimated 30 per cent share of Kenya’s asset finance market.
Its digital vehicle marketplace, CarDuka, facilitated vehicle sales worth Sh1.94 billion, while the KOMIUT transport platform processed collections exceeding Sh117 million.
Retail banking also maintained strong momentum through branch expansion, digital onboarding and targeted campaigns including BOOSTA for SMEs, EasyBuild home financing and diaspora banking.
These initiatives enabled the lender to onboard more than 10,000 new core banking customers every month, while its retail loan portfolio expanded by 54 per cent during the period.
Nedbank transaction progresses
The group also reported progress on its proposed transaction with Nedbank, following the successful closure of its tender offer on July 10, 2026.
The offer attracted subscriptions equivalent to 121 per cent of the targeted shares, with completion now awaiting regulatory approvals and fulfilment of the remaining transaction conditions.
Sustainability agenda gathers pace
Beyond financial performance, NCBA continued advancing its sustainability and social impact agenda.
During the first half of the year, the lender participated in the oversubscribed Sh3 billion Kenya Mortgage Refinance Company (KMRC) bond and expanded financing for electric vehicles across the region.
The group also planted more than 340,000 trees, impacted over 400,000 livelihoods through community programmes, delivered more than 100,000 employee learning hours, and maintained a staff retention rate of 91 per cent.
Outlook
Looking ahead, Mr Gachora said global economic uncertainty is expected to moderate growth, with the world economy projected to expand by 3.1 per cent in 2026.
He, however, expressed confidence that an improving investment climate in the region, coupled with stronger private sector credit demand in Kenya, would support the group’s growth ambitions.
“The regional investment pipeline remains active, with several major transactions expected to conclude in the second half of the year. Our UBUNTU strategy continues to position the Group to deliver sustainable long-term value for customers, shareholders and the communities we serve,” he said.
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