NCBA Group PLC has posted a profit after tax of KES 5.5 billion in its Q1 2025 financial results which is a 3.0 per cent increase compared to Shs5.3 billion reported during a similar period in 2024.
Key Highlights
• Digital Loans disbursed were KES 307 billion, 32 per cent up year on year.
• Profit after tax of KES 5.5 billion, 3.0 per cent up year on year.
• Profit before tax of KES 6.8 billion, 4.5 per cent up year on year.
• Operating income of KES 17.3 billion,8 per cent up year on year.
• Operating expenses of KES 8.9 billion,9 per cent up year on year.
• Provision for credit losses was KES 1.6 billion, 20.3 per cent up year on year.
• Customer deposits closed at KES 496 billion, 9.5 per cent down year on year.
• Total Assets closed at KES 656 billion, 5.6 per cent down year on year.
Commenting on the results, 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.”
“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. Our focus on improved credit led to a lower cost of risk at 1 per cent. The Group remains effectively capitalized at 21.5 per cent with sufficient buffers providing the Group the firepower to take advantage of opportunities for growth.
Key Business Highlights
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 KES 1.1billion, contributing a solid 16 per cent to the Group`s overall profitability and underscoring their growing strategic importance. The Non-Banking subsidiaries delivered a consolidated
positive profit of KES 328 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 KES 309 billion.The re-brand will ensure more competitiveness with amplified positioning in the market as a trusted insurance solutions partner.
As a testament to the Group’s capacity, NCBA’s Investment Bank was selected by FSD Ethiopia to train the Ethiopia Stock Exchange participants on investment banking.
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.
To compliment improved access to banking services, NCBA further reduced its Bank Kenya lending rate to 14.34 per cent p.a. and continued with the monthly account maintenance fees waiver initiative to help customers navigate the macro-economic environment with ease.
The Group has made notable customer experience enhancements by leveraging
technology. The NCBA NOW mobile app has new capabilities on digital account
opening and mobile money payments. CarDuka, NCBA’s digital vehicle marketplace platform now offers improved functionality such as insurance products and has a revamped user experience powered by AI. Additionally, the upgrade of the online banking platform ConnectPlus, for Corporate and SME customers offers faster transactionprocessing, expanded payment options, enhanced reporting tools, cash liquidity management and integrations with other financial services platforms.
On delivery against its Change The Story 15 sustainability commitments, the Group;
• Renewed a KES 3 billion 10-year facility with the African Guarantee Fund (AGF).
• Planted 62,621 trees across 30 institutions and locations through partnerships.
• Installed a 6th EV charging station in Uganda in addition to Kenya and Rwanda.
• Invested KES 12 million in education scholarships, supporting 181 students.
• Relaunched the KCDF MENTENDA Mentorship Program impacting 800 students.
• Reached +94,000 individuals through the Family Media Financial Wellness Show.
• Engaged 2,664 golfers, including 688 juniors through regional sports development.
• Cumulatively impacted 271,683 livelihoods with +3,510 jobs created.
Awards
On the Group`s strategic pillar to Become a Distinguished Brand Known for Customer Experience, NCBA was recognized among the Top 25 Corporations driving ESG by Business Monthly EA, honored at the DIAR Awards for Excellence in ESG and Leadership, overall Second Place in Exceptional Customer Experience by the KBA 2024 Customer Satisfaction Survey, Excellence in Asset Finance by the International Center for Strategic Alliances and the Second Best participating Bank in the 2024
Training Programs by the Tanzania Institute of Bankers.
Looking Forward
Looking ahead, Mr. Gachora commented.
“According to the latest Government of Kenya economic update, while there is
heightened uncertainty on the Global economy projected to grow at 2.8 per cent in 2025 from the earlier projection of 3.3 per cent, the Kenyan economy continues to demonstrate resilience with the easing of monetary policy which will hopefully translate to improved private sector lending and consumer confidence.”
“NCBA remains steadfast in building a strong future-ready institution anchored on innovation, inclusivity and sustainable growth. As we continue to reinforce customer obsession across the region, our focus remains clear in delivering shareholder value with excellence and creating impact to shape a better tomorrow for generations to come,”
