NCBA Group has announced a profit after tax of Ksh. 5.5 billion for the first quarter of 2025. This represents a 3% increase from the Ksh. 5.3 billion reported during the same period last year.
The rise in profitability was driven by a rise in digital loan disbursements, which rose 32% year-on-year to Ksh. 307 billion. Profit before tax also saw an increase of 4.5%, reaching Ksh. 6.8 billion, while operating income grew by 8% Ksh. 17.3 billion.
Despite market headwinds, NCBA Group Managing Director John Gachora expressed satisfaction with the results. “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,” he commented. Gachora noted that a strategic focus on optimizing funding costs and enhancing asset allocation efficiency led to a contraction in customer deposits and total assets, closing at Ksh. 496 billion (down 9.5%) and Ksh. 656 billion (down 5.6%) respectively.
“Consequently, the effective cost of funds management has improved our net interest margin to 6.1 percent, up from 5.0 percent over the same period last year,” Gachora added. He highlighted the Group’s commitment to financial resilience, with impairment coverage increased to 63 percent and a healthy Non-Performing Loan (NPL) ratio maintained at 11.9 percent. The focus on improved credit resulted in a lower cost of risk at 1 percent, and the Group remains strongly capitalized at 21.5 percent, providing robust buffers for future growth opportunities.
NCBA Bank Kenya played a pivotal role in the Group’s overall performance, contributing 79% Ksh. 6.8 billion profit before tax. The banking subsidiaries delivered Ksh. 1.1 billion in profit before tax, accounting for 16% of the Group’s profitability. Non-banking subsidiaries also contributed a consolidated profit of Ksh. 328 million (5% of Group profitability).
The quarter saw the completion of the integration of the recently acquired AIG (Kenya) Insurance Company, now rebranded as NCBA Insurance. This is part of the company’s ambition to capture a larger share of Kenya’s substantial Ksh. 309 billion insurance industry.
In the quarter, NCBA’s Investment Bank was selected by FSD Ethiopia to provide training to participants of the Ethiopia Stock Exchange on investment banking. NCBA also reached a significant milestone by opening its 100th branch in Kenya with the official launch of the Tatu City branch and a new branch at Nord Mall, Ruiru. The addition of the Nyagatare Agency branch in Rwanda expanded the Group’s total regional branch network to 121.
NCBA Bank Kenya further reduced its lending rate to 14.34% p.a. and continued its monthly account maintenance fees waiver initiative.
The NCBA NOW mobile app now offers new capabilities for digital account opening and mobile money payments. CarDuka, NCBA’s digital vehicle marketplace, features improved functionality including insurance products and a revamped, AI-powered user experience. Additionally, the upgraded ConnectPlus online banking platform for Corporate and SME customers provides faster transaction processing, expanded payment options, enhanced reporting tools, cash liquidity management, and integrations with other financial services platforms.
The Group also reported significant progress on its Change The Story 15 sustainability commitments which include:
* Renewal of a Ksh. 3 billion 10-year facility with the African Guarantee Fund (AGF).
* Planting of 62,621 trees across 30 institutions and locations through partnerships.
* Installation of a 6th EV charging station in Uganda, complementing existing stations in Kenya and Rwanda.
* Investment of Ksh. 12 million in education scholarships, supporting 181 students.
* Relaunch of the the KCDF MENTENDA Mentorship Program, impacting 800 students.
* Reaching over 94,000 individuals through the Family Media Financial Wellness Show.
* Engagement of 2,664 golfers, including 688 juniors, through regional sports development.
* Cumulatively impacted 271,683 livelihoods, creating over 3,510 jobs.