NCBA Group PLC has announced that it has has posted a profit after tax of KES 11.1 billion for the half year ended 30th June 2025. This is 12.6 per cent increase as compared to the Ksh. 9.8 billion the company reported during a similar period in 2024.
The company’s Board of Directors have recommended an interim dividend declaration of Ksh. 2.50 per share after the strong half year performance.
The company’s top line performance shows clear strength, with profit before tax rising by 11.4 per cent to Ksh. 13.6 billion and profit after tax increasing by 12.6 per cent to Ksh. 11.1 billion. This robust profitability is primarily driven by a significant 12.7 per cent year-on-year increase in operating income, which reached Ksh. 35.3 billion. The increase in operating income outpaced the rise in operating expenses, which grew by a comparable 12.5 per cent to Ksh. 18.6 billion, contributing directly to the healthy profit margins.
Commenting on the results, Group Managing Director, John Gachora said “I’m pleased to announce our H1 2025 financial results which highlight a rebound and positive momentum on business performance. The income growth of 13 per cent was driven by a combination of operational excellence and prudent pricing management despite a challenging economic environment. Our focus on maintaining high quality assets and enhanced recoveries was evident with the NPL ratio of 11.9 per cent and cost of risk at 1.4 per cent. We maintained a capital adequacy ratio of 22.4 per cent, well above regulatory requirements and sufficient to meet our lending requirements and invest in strategic growth opportunities. In our mission to make customers’ lives easier, NCBA Bank Kenya Shillings Base Lending Rate (NBLR) since August 2024 has dropped by 4.02 per cent while over the same period, the CBR has dropped by 3.50 per cent.”
The Kenya Bank subsidiary delivered strong performance in H1 2025, recording a notable year over year profitability growth of 7.4 per cent to reach Ksh. 11 billion PBT. This was a contribution of 81 per cent to Group profitability driven by improved cost of funding and better Net Interest Income which grew 32 per cent. The Regional businesses delivered a strong performance driven by recoveries with a combined PBT of Ksh. 1.8 billion, contributing 13.6 per cent to Group profitability.
The non-banking subsidiaries recorded a combined PBT of Ksh. 804 million contributing 5.9 per cent of Group profitability and growing 40 per cent year over year. Notably, the NCBA Investment Bank surpassed 50,000 clients through digital onboarding and cross-sell wins with assets under management growing to Ksh. 86 billion. The NCBA Insurance business profitability grew 68 per cent year on year post full acquisition signaling successful integration into the Group.
The company grew its network to 122 branches across the region with Kenya crossing the 100 branches mark post launching the Nord Ruiru branch. The combination of innovative retail banking services including digital account onboarding, digital lending products, diaspora and SME banking activations and the continued waiver of monthly account fees resulted to growing their core bank customer base to 412,000, while overall customer base approached the 70 million mark.
NCBA has successfully maintained its Asset Finance leadership, retaining a commanding 31 per cent market share. This position was solidified through expanded dealer partnerships and continuous innovation, including the enhanced “CarDuka” digital platform. The revamped platform, powered by AI, now provides an improved user experience and new functionalities such as insurance products. NCBA’s upgraded “ConnectPlus” online corporate banking platform has seen robust adoption, with over 90 per cent of active clients now utilizing its features for faster transactions, expanded payment options, and enhanced cash liquidity management.
The NCBA Go-Getter Internship Programe welcomed a new cohort of 50 interns. This 12-month program is designed to shape their careers through extensive learning and networking opportunities. Complementing this internal focus, NCBA also made significant progress in its “Change The Story” sustainability commitments. This included mobilizing Ksh. 9.5 billion for green and sustainable financing, planting over 396,000 trees, and empowering more than 55,000 women and youth with skills and mentorship. These community-focused initiatives also created over 9,000 direct and indirect jobs and impacted over 743,000 livelihoods through various engagements and partnerships.
The company was honored for Exceptional Customer Experience by the KBA 2024 Customer Satisfaction Survey and for Excellence in Asset Finance by the International Center for Strategic Alliance. It was also recognized as the Second Best participating Bank in the 2024 Training Programs by the Tanzania Institute of Bankers and received the Best Overall Banking Experience award from the Banking on Women Awards.
Looking ahead, Mr. Gachora said “The operating environment indicators are positive including global growth outlook of 3.0 per cent, stable KES/USD currency at KES 129, inflation within target at 4.1 per cent and the latest Kenya CBR downward revision to 9.50 per cent. The interventions by the Government are expected to stimulate economic activity and accelerate credit uptake by the private sector whose growth is at 3.3 per cent. “NCBA remains committed to delivering strong financial performance backed by continued strategic investments in people, technology and brand while fostering a
customer obsessed culture to drive sustainable growth”