NCBA Group recorded a 3% increase in profit after tax to Ksh.5.5 billion for the quarter ended March 2025, up from Ksh.5.3 billion posted during a similar period in 2024.
The group’s performance was largely driven by its Kenyan banking operations, which contributed 79% of the Ksh.6.8 billion gross profit.
Regional subsidiaries accounted for Ksh.1.1 billion, while non-banking units contributed Ksh.328 million.
“This performance underscores the resilience of our core income streams,” said NCBA Group Managing Director John Gachora, noting that improved asset quality was also a key driver.
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“The decline in customer deposits and assets reflects strategic moves to optimize funding costs and enhance asset allocation efficiency.”
Operating income rose by 8% year-on-year to Ksh.17.3 billion, supported by a surge in digital lending, which reached Ksh.307 billion, marking a 32% growth.
As a result of better cost management, the net interest margin improved to 6.1%, up from 5.0% in Q1 2024.
NCBA also strengthened its financial buffers, raising impairment coverage to 63% and maintaining a non-performing loan (NPL) ratio of 11.9%.
The cost of risk declined to 1%, attributed to enhanced credit risk controls.
“The Group remains well-capitalized at 21.5%, giving us the firepower to pursue growth opportunities,” Gachora added.
However, the bank saw a 20.3% increase in loan loss provisions, which rose to Ksh.1.6 billion, while total assets growth slowed, closing the quarter at Ksh.656 billion.
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