Regional lender NCBA Group has reported a 12.6 percent increase in net earnings to KES11 billion attributable to improved cost of funding and an increase in net interest income during the half ended June 30.

Group's regional subsidiaries delivered a strong performance during the period, posting 7.4 percent increase in gross earnings to KES11 billion. 

The directors have approved the payment of an interim dividend of KES2.5 for every ordinary share of KES5 held at the close of business on 18 September, 2025.

Disclosures show that NCBA's operating income increased by 12.7 percent year-on-year to KES35.3 billion even as expenses closed at KES18.6 billion, reflecting a 12.5 per cent uptick YoY.

Customer deposits closed at KES497 billion, a 6 percent decline on account of tough operating environment marked by inflation and high interest rates. 

Loans and advances to customers dipped by KES3 billion to KES20 billion during the half that also saw gross non performing losses dip slightly to KES 38 billion. However, the lender's provision for loan losses soared by 19.1 percent to close at KES3.2 billion from KES2.7 billion reported in June 2024.

NCBA Group Managing Director and CEO John Gachora said: "The income growth of 13 percent was driven by a combination of operational excellence and prudent pricing management despite a challenging economic environment.”

He added: “Our focus on maintaining high-quality assets and enhanced recoveries was evident with the NPL ratio of 11.9 percent and cost of risk at 1.4 percent. We maintained a capital adequacy ratio of 22.4 percent, well above regulatory requirements and sufficient to meet our lending requirements and invest in strategic growth opportunities.”

The lender's subsidiaries contributed 81 percent to Group profitability, powered by improved cost of funding and a 32 percent increase in net interest income. 

NCBA said the regional businesses delivered a strong performance driven by recoveries with combined gross profit of KES1.8 billion, contributing 13.6 per cent to Group profitability.

During the half, NCBA's non-banking subsidiaries recorded a combined profit before tax of KES804 million, contributing 5.9 percent of Group profitability and growing 40 percent year over year. 

The lender said its investment banking unit surpassed 50,000 clients through digital onboarding and cross-sell wins, with assets under management growing to KES86 billion. 

At the same time, NCBA Insurance business's profitability grew by 68 per cent year-over-year post-full acquisition, signalling a successful integration formerly AIG insurance into the Group.

Looking forward, Gachora said, "The interventions by the government are expected to stimulate economic activity and accelerate credit uptake by the private sector, whose growth is at 3.3 percent. NCBA remains committed to delivering strong financial performance backed by continued strategic investments in people, technology."

Gachora commented. “The operating environment indicators are positive, including global growth outlook of 3.0 percent, stable KES/USD currency at KES129, inflation within target at 4.1 percent and the latest Kenya CBR downward revision to 9.50 percent. The interventions by the government are expected to stimulate economic activity and accelerate credit uptake by the private sector, whose growth is at 3.3 percent.”

“NCBA remains committed to delivering strong financial performance backed by continued strategic investments in people, technology and brand while fostering a customer-obsessed culture to drive sustainable growth.”

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