NCBA Group Posts Sh5.5 Billion Net Profit in Q1 2025
NCBA Group PLC has reported a net profit of KSh 5.5 billion for the first quarter of 2025, marking a 3.0% increase from KSh 5.3 billion recorded in Q1 2024.
The growth in earnings was supported by higher digital loan disbursements, improved operating income, and effective cost of funds management, despite a contraction in customer deposits and total assets.
Total operating income rose by 8% year-on-year to KSh 17.3 billion, while operating expenses climbed by 9% to KSh 8.9 billion.
Profit before tax increased by 4.5% to KSh 6.8 billion. Provision for credit losses stood at KSh 1.6 billion, representing a 20.3% year-on-year increase, as the lender enhanced impairment coverage to 63%.
Digital lending remained a key growth driver, with disbursements reaching KSh 307 billion in Q1, up 32% compared to the same period last year.
NCBA’s net interest margin improved to 6.1%, from 5.0% in Q1 2024, attributed to strategic optimization of funding costs and asset allocation.
Read: NCBA Group Appoints New Managing Director for NCBA Bank Kenya
NCBA Group Managing Director John Gachora stated, “Despite the headwinds of 2025, 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.”
The Group reported a decline in customer deposits to KSh 496 billion, down 9.5% year-on-year, while total assets decreased by 5.6% to KSh 656 billion.
Gachora noted that this was driven by initiatives aimed at enhancing balance sheet efficiency. The Group’s non-performing loan ratio stood at 11.9%, while the cost of risk declined to 1%.
NCBA Bank Kenya remained the primary earnings contributor, generating 79% of the Group’s profit before tax.
Regional subsidiaries delivered a combined profit before tax of KSh 1.1 billion, accounting for 16% of total earnings. Non-banking units contributed KSh 328 million, or 5% of Group profitability.
During the quarter, NCBA completed the integration of AIG Kenya Insurance, rebranding it as NCBA Insurance. The move aligns with the Group’s strategy to increase its footprint in Kenya’s KSh 309 billion insurance sector.
The Group also expanded its physical presence, opening its 100th Kenyan branch at Tatu City and a new outlet at Nord Mall in Ruiru.
In Rwanda, NCBA launched the Nyagatare Agency branch, bringing its regional network to 121 branches.
To support retail customers, NCBA Bank Kenya reduced its lending rate to 14.34% p.a. and maintained its monthly account maintenance fee waiver.
On the digital front, the NCBA NOW app introduced new features for account opening and mobile payments. CarDuka, the Group’s online vehicle marketplace, now integrates insurance offerings and AI-enhanced user experience.
Additionally, the upgraded ConnectPlus platform offers expanded features for corporate and SME clients, including faster transactions and improved cash management tools.
Additionally, NCBA Investment Bank was selected by FSD Ethiopia to train participants of the Ethiopia Stock Exchange on investment banking.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
