NCBA Group PLC has reported a KES 5.5 billion profit after tax for the first quarter of 2025, representing a 3.0 per cent rise from the KES 5.3 billion recorded in the same period in 2024. The Group’s performance underscores resilience and strategic focus despite ongoing economic headwinds.
According to the financial results released today, NCBA’s profit before tax grew by 4.5 per cent to KES 6.8 billion, while operating income rose by 8 per cent year-on-year to reach KES 17.3 billion. However, this was accompanied by a 9 per cent increase in operating expenses, now standing at KES 8.9 billion, and a 20.3 per cent surge in credit loss provisions to KES 1.6 billion.
NCBA Group Managing Director, John Gachora, attributed the performance to solid core income streams and effective risk management. “Despite the headwinds of 2025, we are pleased to present these positive results. The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality,” he said.
The Group reported a 6.1 per cent net interest margin, up from 5.0 per cent in Q1 2024, driven by a strategic focus on managing funding costs and improving asset allocation. NCBA’s customer deposits declined by 9.5 per cent to KES 496 billion, while total assets also decreased by 5.6 per cent to KES 656 billion, reflecting a deliberate shift in funding strategies.
Asset quality improved with impairment coverage increasing to 63 per cent, and a non-performing loan (NPL) ratio maintained at a relatively stable 11.9 per cent. The cost of risk dropped to 1 per cent, and the Group maintained strong capital buffers, with total capital adequacy at 21.5 per cent.
Diverse Business Performance
NCBA’s business diversification remains a key strength. NCBA Bank Kenya contributed 79 per cent of the Group’s KES 6.8 billion profit before tax. Regional banking subsidiaries accounted for KES 1.1 billion or 16 per cent of profit before tax, while non-banking subsidiaries delivered a consolidated profit of KES 328 million, contributing 5 per cent to overall profitability.
In a significant move, the Group completed the integration of AIG Kenya Insurance Company, unveiling a rebranded NCBA Insurance to enhance its footprint in Kenya’s KES 309 billion insurance sector.
Strategic Expansions and Innovations
The Group marked a milestone with the opening of its 100th branch in Kenya at Tatu City, alongside another outlet at Nord Mall, Ruiru. Regionally, the addition of the Nyagatare Agency in Rwanda brought NCBA’s total branch network to 121.
As part of customer-centric reforms, NCBA Bank Kenya reduced its lending rate to 14.34 per cent per annum and continued to waive monthly account maintenance fees. It also upgraded its digital platforms, including new capabilities in the NCBA NOW mobile app, a redesigned CarDuka vehicle marketplace powered by AI, and enhancements to the ConnectPlus platform for corporate and SME clients.
Sustainability and Social Impact
NCBA advanced its “Change The Story” sustainability agenda through several initiatives:
- Renewed a KES 3 billion facility with the African Guarantee Fund.
- Planted over 62,000 trees across 30 sites.
- Installed its sixth EV charging station in Uganda.
- Invested KES 12 million in scholarships benefiting 181 students.
- Relaunched the KCDF Mentenda Mentorship Programme, reaching 800 students.
- Reached over 94,000 individuals through the Family Media Financial Wellness Show.
- Created over 3,510 jobs and impacted 271,683 livelihoods cumulatively.
Recognitions and Outlook
NCBA received multiple accolades, including recognition as one of the Top 25 Corporations driving ESG by Business Monthly EA, second place in the Kenya Bankers Association’s Customer Satisfaction Survey, and awards for excellence in asset finance and training from regional institutions.
Looking forward, Mr Gachora remains optimistic despite global economic uncertainty. “The Kenyan economy continues to demonstrate resilience. NCBA remains steadfast in building a future-ready institution anchored on innovation, inclusivity and sustainable growth,” he stated.
