NCBA Group has reported a 12.2 percent increase in half-year net profit to KSh12.4 billion, powered by a surge in digital loans and cost management strategies in the six months to June 30.

The lender, which is preparing a change in control following South African banking group Nedbank's successful offer, said gross profit rose 14.3 percent to KSh15.5 billion while operating income climbed 15.1 percent to KSh40.7 billion.

According to results released on Wednesday, digital lending continued to drive the group's business expansion, with loan disbursements surging 26.9 per cent to KSh819 billion. 

Customer deposits increased by 11 percent to KSh551 billion, while total assets expanded by 11.5 percent to KSh739 billion.

The board declared an interim dividend of KSh3.75 per share, up sharply from KSh2.50 paid in the first half of 2025, signalling confidence in the bank's earnings trajectory.

However, the results also reflected the heightened credit risks prevailing across the region's financial market. NCBA increased provisions for credit losses to KSh5.2 billion, up from KSh3.2 billion a year earlier, as the bank adopted "a prudent approach to credit risk assessment given the heightened volatile operating environment".

Group Managing Director John Gachora said the bank had navigated inflationary pressures and cautious monetary policies across East Africa through disciplined execution of its UBUNTU strategy. 

"Our balance sheet momentum remained strong, anchored on disciplined growth in quality lending demonstrated by well-managed non-performing loans of 10.5 percent compared to the market's 15.3 percent," he stated in part.

NCBA Kenya, which remains the group's largest profit engine, grew profitability by 24.3 percent year-on-year to KSh13.7 billion. 

Regional subsidiaries in Uganda, Tanzania and Rwanda contributed a combined KSh1.6 billion in profit, driven by 25 percent lending growth and an 11 percent increase in income.

Additionally, non-banking subsidiaries, including investment banking, leasing, bancassurance and insurance, posted a combined KSh1.1 billion profit, reflecting 40 percent jump from the prior year.

South African lender Nedbank Group's offer to acquire approximately 66 per cent of NCBA closed on July 10, attracting 79.9 percent shareholder acceptance. The transaction, valued at approximately R13.9 billion, is on track for completion in the third quarter or early fourth quarter, subject to final regulatory approvals.

Nedbank has described NCBA as a high-quality asset that will provide a strategic foothold in East Africa, with the Kenyan lender's Loop fintech platform seen as a scalable capability that could be exported to other markets.

The acquisition aligns with Nedbank's strategy to diversify earnings into the region's attractive growth markets, where GDP expansion is projected above 5 percent.

CEO Gachora expressed confidence in the bank's outlook despite a softer global growth projection of 3.1 percent for 2026. "The investor landscape remains vibrant with major regional expansion transaction deals expected to close in the second half of the year," he noted.

[email protected]