NCBA Group PLC has reported a profit after tax of KES5.5 billion in its first three months to March, 2025, which represents a 3.0 per cent increase compared to KES5.3 billion recorded during a similar period in 2024.

Profit before tax also rose to KES6.8 billion, marking a 4.5 per cent year-on-year growth. This was supported by an 8 per cent rise in operating income to KES17.3 billion, driven largely by strong momentum in digital lending, which saw disbursements jump by 32 per cent to KES307 billion—underscoring the bank’s digital-first strategy.

However, the quarter also came with increased costs. Operating expenses rose by 9 per cent to KES8.9 billion, while provisions for credit losses surged 20.3 per cent to KES 1.6 billion, pointing to a more cautious stance amid economic uncertainty across the region. 

On the balance sheet side, customer deposits declined by 9.5 per cent to KES496 billion, and total assets dropped by 5.6 per cent to KES656 billion. Despite these contractions, NCBA’s earnings growth and digital lending expansion reflect underlying strength and adaptability in a challenging macroeconomic environment.

NCBA Group Managing Director, John Gachora remarked, “Despite the headwinds of 2025, we are pleased to present these positive results in the first quarter of 2025. The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality. The contraction in customer deposits and assets was driven by strategic initiatives focused on optimizing funding costs and enhancing asset allocation efficiency.”

He added, “Consequently, the effective cost of funds management has improved our net interest margin to 6.1 per cent up from 5.0 per cent over the same period last year. To strengthen our financial resilience, we increased our impairment coverage to 63 per cent, while maintaining a healthy Non-performing loan (NPL) ratio of 11.9 per cent."

The Group`s business diversification played a pivotal role where NCBA Bank Kenya remained a key driver contributing 79 per cent of the Group’s KES 6.8 billion profit before tax. The regional banking subsidiaries delivered profit before tax of KES1.1billion, contributing 16 per cent to the Group`s overall profitability and underscoring their growing strategic importance. 

Additionally, the Non-Banking subsidiaries delivered a consolidated positive profit of KES328 million, contributing 5 per cent to Group profitability.

During the quarter, NCBA completed the integration of the recently acquired AIG (Kenya) Insurance Company when it unveiled a new brand identity for the now NCBA Insurance subsidiary, reinforcing its commitment to seize share in Kenya’s sizeable insurance industry valued at KES309 billion.

According to the lender, the re-brand will ensure more competitiveness with amplified positioning in the market as a trusted insurance solutions partner.

In line with the Group’s Retail Banking expansion strategy, NCBA reached the 100 branch mark in Kenya with the official launch of Tatu City branch and the opening of its newest branch at the Nord Mall, Ruiru. Additionally, the new Nyagatare Agency branch in Rwanda brings the Group`s total branch network across the region to 121.

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