John Gachora, NCBA Group Managing Director. Photo by Oxygene Communication
NCBA Group PLC has posted a profit after tax of KES 11.1 billion in its H1 2025 financial results, which is a 12.6 per cent increase compared to KES 9.8 billion reported during a similar period in 2024.
The Group’s solid financial results, led by operational excellence and strategic pricing, confirm that it is a most valuable player in a less-than-ideal economic environment.
Some of the main highlights from the financial aspect are that the profit before tax was KES 13.6 billion, up 11.4 per cent year-on-year and the operating income was KES 35.3 billion, up by 12.7 per cent.
The operating expenses increased 12.5 per cent to KES 18.6 billion, while the provision for credit losses also increased 19.1 per cent to KES 3.2 billion in line with a more cautious approach to risk. The digital loan disbursements grew 35 per cent to KES 646 billion showcasing the bank’s digital strength.
However, bank customer deposits and total assets went down by 6.0 per cent to KES 497 billion and 3.8 per cent to KES 663 billion, respectively. The Board has proposed an interim dividend of KES 2.50 per share.
John Gachora, Group Managing Director, described the 13 per cent income increase as a result of “operational excellence and prudent pricing management.” NCBA kept the ratio of non-performing loans at 11.9 per cent, the cost of risk at 1.4 per cent, and capital adequacy at 22.4 per cent, all in line with or exceeding the required regulatory levels.
The Group is leading a far lower interest rate than before by 4.02 per cent since August 2024, knocking off more than a third of where the Central Bank of Kenya cut to 9.50 per cent would have placed the Kenya Base Lending Rate.
The Kenya Bank premises presented higher results with an increase in profit before tax of 7.4 per cent to KES 11 billion being the main achievement, thus contributing 81 per cent to Group profitability.
This was mainly driven by a 32 per cent rise in net interest income. The international ventures contributed KES 1.8 billion, up 13.6 per cent, and the non-banking subsidiaries comprising NCBA Investment Bank and NCBA Insurance also experienced an increase in profits by 40 per cent to KES 804 million.
NCBA Investment Bank’s customer base surpassed 50,000 clients, while assets under management stand at KES 86 billion, and NCBA Insurance saw a 68 per cent profit increase post-acquisition.
NCBA regional branch count expanded to 122, with Kenya passing the 100-branch mark. The company witnessed an increase in its user base due to digital innovations such as the AI-powered “CarDuka” platform and “ConnectPlus” corporate banking platform, which are used by more than 90 per cent of the active clients.
The number of core bank clients grew to 412,000, and overall, it was close to 70 million. The Group maintained a 31 per cent market share in asset finance.
On sustainability, NCBA financed a green project worth KES 9.5 billion, planted 396,459 trees, and positively impacted 743,768 lives.
The awards received include Exceptional Customer Experience (KBA 2024) and 6th Most Valuable Brand in Kenya (Brand Finance).
In his outlook, Gachora listed a positive agenda for NCBA, such as the world economy growing at 3.0 per cent, inflation being very stable at 4.1 per cent, and the bank being well-positioned to benefit from these factors through investing in both technology and customer-centricity.