NCBA Group PLC has announced a KES 5.5 billion profit after tax for Q1 2025, a 3% increase from the KES 5.3 billion posted in the same period last year, signaling resilience despite macroeconomic pressure and shrinking customer deposits.
In its Q1 financial report, the lender posted a KES 6.8 billion profit before tax, up 4.5% year-on-year, driven by a surge in digital lending and operational efficiencies.
Digital loans worth KES 307 billion were disbursed, a 32% year-on-year increase, showcasing the Group’s aggressive push in tech-driven finance.
NCBA’s operating income rose by 8% to KES 17.3 billion, though this was matched by a 9% rise in operating expenses to KES 8.9 billion.
The bank’s provision for credit losses spiked 20.3% to KES 1.6 billion, reflecting cautious lending amid economic headwinds.
However, the lender reported a decline in total assets, which dropped 5.6% to KES 656 billion, while customer deposits fell 9.5% to KES 496 billion — a move Group MD John Gachora attributed to strategic funding cost optimization.
“The contraction in customer deposits and assets was driven by efforts to manage cost of funds and optimize asset allocation,” said Gachora. “Despite this, our net interest margin improved significantly to 6.1%, up from 5.0% last year.”
NCBA’s banking arm in Kenya contributed a dominant 79% to Group profit before tax, with regional subsidiaries and non-banking units adding 16% and 5% respectively.
The Group also finalized its AIG Kenya acquisition, rebranding it as NCBA Insurance, and opened its 100th branch in Kenya. Tech upgrades to ConnectPlus, NCBA NOW App, and CarDuka further highlight its pivot to digital innovation.
Looking ahead, NCBA is positioning itself for growth, despite global uncertainties, banking on easing monetary policy and robust sustainability commitments that include EV infrastructure, tree planting, and education support.
