In its first quarter 2025 financial results, NCBA Group PLC reported a profit after tax of KES 5.5 billion, a 3 percent increase over the KES 5.3 billion reported for the same period in 2024.
The Group’s business diversification was crucial, and NCBA Bank Kenya continued to be a major contributor, accounting for 79 percent of the Group’s KES 6.8 billion profit before taxes.
With a profit before tax of KES 1.1 billion, the regional banking subsidiaries demonstrated their increasing strategic significance and made a substantial 16 percent contribution to the Group’s overall profitability.
Non-banking subsidiaries contribute profit of KES 328 million
The non-banking subsidiaries contributed 5 percent of the group’s profitability with a consolidated positive profit of KES 328 million.
By announcing a new brand identity for the now-NCBA Insurance subsidiary and completing the integration of the recently acquired AIG (Kenya) Insurance Company, NCBA strengthened its resolve to capture a portion of Kenya’s sizable insurance market, which is worth KES 309 billion. With improved market positioning as a reliable partner for insurance solutions, the rebrand will guarantee greater competitiveness.
FSD Ethiopia chose NCBA’s Investment Bank to provide investment banking training to the Ethiopia Stock Exchange participants, demonstrating the Group’s capabilities.
With the official opening of the Tatu City branch and the opening of its newest branch at the Nord Mall in Ruiru, NCBA achieved the 100 branch milestone in Kenya in accordance with the Group’s Retail Banking expansion strategy.
Furthermore, the Group now has 121 branches throughout the region thanks to the opening of the Nyagatare Agency branch in Rwanda.
In addition to providing better access to banking services, NCBA lowered its Bank Kenya lending rate to 14.34 percent p.a. and kept up its monthly account maintenance fee waiver program to make it easier for clients to deal with the macroeconomic climate.
Introduction of account-opening features in NCBA NOW mobile app
The Group has used technology to improve the customer experience in a significant way. New features for opening digital accounts and making mobile money payments are available through the NCBA NOW app.
CarDuka, NCBA’s digital vehicle marketplace platform, has a redesigned user interface driven by AI and now offers enhanced features like insurance products.
Furthermore, the ConnectPlus online banking platform upgrade for corporate and small business clients provides improved reporting capabilities, increased payment options, quicker transaction processing, cash liquidity management, and integrations with other financial services platforms.
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 optimising 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. Our focus on improved credit led to a lower cost of risk at 1 per cent. The Group remains effectively capitalised at 21.5 per cent with sufficient buffers providing the Group the firepower to take advantage of opportunities for growth.”
NCBA’s Corporate Social Responsibilities
The Group renewed a 10-year, KES 3 billion facility with the African Guarantee Fund (AGF) in fulfilment of its Change The Story 15 sustainability commitments.
Additionally, 62,621 trees were planted through partnerships in 30 institutions and locations. In addition to Kenya and Rwanda, a sixth EV charging station has been installed in Uganda.
181 students were supported by KES 12 million in education scholarships. 800 students were impacted by the KCDF MENTENDA Mentorship Program’s relaunch. Over 94,000 people were reached by the Family Media Financial Wellness Show.
Awards
Regarding the Group’s strategic goal of becoming a distinguished brand known for its customer experience, NCBA was named one of the Top 25 ESG-driven corporations by Business Monthly EA, honoured at the DIAR Awards for Excellence in ESG and Leadership, placed second overall in the KBA 2024 Customer Satisfaction Survey for Exceptional Customer Experience, ranked second in asset finance by the International Centre for Strategic Alliances, and named the second-best participating bank in the Tanzania Institute of Bankers’ 2024 Training Programs.
Future prospects
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 percent 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.”
He continued, “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,”
Key Highlights
- KES 307 billion in digital loans were disbursed, a 32 percent increase from the previous year.
- KES 5.5 billion in profit after taxes, a 3 percent increase from the previous year.
- KES 6.8 billion in profit before taxes, a 4.5 percent increase from the previous year.
- Operating income increased by 11.8 percent year over year to KES 17.3 billion.
- Operating costs increased by 9 percent year over year to KES 8.9 billion.
- KES 1.6 billion was set aside for credit losses, a 20.3 percent increase from the previous year.
- The closing value of customer deposits was KES 496 billion, a 9.5 percent decrease from the previous year.
- At KES 656 billion, total assets closed at a 5.6 percent annual decline.
- Organisation of sports development where 2,664 golfers participated, 688 of whom were juniors.
About NCBA Group
The NCBA Group is a full-service banking organisation that offers corporate, institutional, SME, and consumer banking clients a wide range of financial products and services. Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast are among the five nations where the NCBA Group runs a network of over 100 branches.
The NCBA Group is the biggest banking group in Africa in terms of customer numbers, with over 60 million clients. In terms of assets, NCBA Bank Kenya PLC is one of the top banks.
Africa’s economic aspirations continue to be greatly aided by the bank. In the areas of corporate banking, asset finance, and digital banking, the bank leads the market.