John Gachora, NCBA Group Managing Director. File
NCBA Group posts KES 5.5 Billion profit in Q1 2025, signals resilience amid economic headwinds
NCBA Group PLC has reported a profit after tax of KES 5.5 billion for the first quarter of 2025, representing a 3.0 percent increase compared to KES 5.3 billion recorded during a similar period in 2024. The results, released today, reflect the Group’s robust performance amid a challenging macroeconomic environment
The Group’s operating income rose by 8 percent year-on-year to KES 17.3 billion, while profit before tax increased by 4.5 perce to KES 6.8 billion. Notably, digital loans disbursed surged by 32 percent to KES 307 billion, underlining the growing importance of digital platforms in NCBA’s operations.
Despite a 9.5 percent decline in customer deposits to KES 496 billion a n a 5.6 percent contraction in total assets to KES 656 billion, NCBA attributed the reduction to strategic asset reallocation and efforts to optimize funding
Group Managing Director John Gachora said the performance reflected resilience in core income streams and improved asset quality. “Effective cost of funds management helped lift our net interest margin to 6.1 percentup from 55.0 percent in Q1 2024,” Gachora said.
Credit quality also improved, with NCBA maintaining a Non-Performing Loan (NPL) ratio of 11.9 percent and a cost of risk at 1 percent. The Group raised its impairment coverage to 63 percent, demonstrating prudent credit risk management. The Group remains well-capitalized with a total capital adequacy ratio of 21.5 percent, well above regulatory requirements.
Kenya remained NCBA’s main profit driver, with NCBA Bank Kenya contributing 79 percent of the Group’s pre-tax profit. Regional subsidiaries contributed KES 1.1 billion, or 16 percent of Group profit before tax, affirming their strategic importance. Non-banking subsidiaries contributed KES 328 million, or 5 percent of profits.
The Group finalized the integration of AIG Kenya, unveiling a new identity under NCBA Insurance, signaling its intent to scale operations in the KES 309 billion insurance industry
NCBA expanded its branch network to 121 across the region, marking the opening of its 100th branch in Kenya at Tatu City and a new branch in Ruiru’s Nord Mall. It also launched a new agency branch in Nyagatare, Rwanda.
To enhance customer accessibility, the bank lowered its lending rate to 14.34 percent p.a. and continued its monthly account maintenance fee waiver to ease economic pressure on customers.
Tech upgrades included new functionalities on the NCBA NOW mobile app, AI-driven improvements on CarDuka, and enhancements on the ConnectPlus platform for SMEs and corporates, offering faster transactions and expanded integration.
Under its “Change the Story” sustainability agenda, NCBA renewed a KES 3 billion facility with the African Guarantee Fund, planted over 62,000 trees, installed EV charging stations across East Africa, and invested KES 12 million in education scholarships, impacting over 181 students.
The Group also reached over 94,000 individuals through financial wellness programs, engaged thousands in sports initiatives, and created over 3,500 jobs, impacting over 271,000 livelihoods.
NCBA’s commitment to ESG and customer experience earned it multiple accolades, including recognition among Top 25 ESG Corporations by Business Monthly EA, second place in KBA’s 2024 Customer Satisfaction Survey, and honors in asset finance and training.
Looking ahead, Gachora remained optimistic: “While global economic growth is forecast to slow to 2.8 percent, Kenya’s easing monetary policy offers hope for improved lending and consumer confidence. We remain focused on innovation, sustainable growth, and creating long-term shareholder value.