NCBA Group Plc announced a net profit of KSh 5.5 billion for the first quarter of 2025, marking a 3% increase year-on-year from KSh 5.3 billion in Q1 2024.
This growth was fueled by an 8% rise in operating income and a notable improvement in net interest margin (NIM) to 6.1%, which is the highest in recent years.
Profit before tax (PBT) saw a 4.5% increase, reaching KSh 6.8 billion from KSh 6.5 billion in the comparable period.
Despite the positive earnings, the group’s balance sheet contracted. Customer deposits decreased by 9.5% to KSh 496 billion, and total assets were down by 5.6% to KSh 656 billion.
NCBA attributed this contraction to “strategic initiatives focused on optimising funding costs and enhancing asset allocation efficiency,” as stated by NCBA Group Managing Director John Gachora.
The group achieved a lower cost-to-income ratio of 51.3%, reflecting effective cost controls, while Return on Equity (ROE) remained strong at 18.7%. Loan loss provisions increased by 20.3% to KSh 1.6 billion.
Q1 2025 Performance Highlights
| Metric | Q1 2025 | Q1 2024 | YoY Change |
| Net Profit | KSh 5.5 Bn | KSh 5.3 Bn | ▲ 3.0% |
| Profit Before Tax | KSh 6.8 Bn | KSh 6.5 Bn | ▲ 4.5% |
| Operating Income | KSh 17.3 Bn | KSh 16.0 Bn | ▲ 8.0% |
| Operating Expenses | KSh 8.9 Bn | KSh 8.2 Bn | ▲ 9.0% |
| Loan Loss Provisions | KSh 1.6 Bn | KSh 1.3 Bn | ▲ 20.3% |
| Customer Deposits | KSh 496 Bn | KSh 548 Bn | ▼ 9.5% |
| Total Assets | KSh 656 Bn | KSh 695 Bn | ▼ 5.6% |
| Net Interest Margin | 6.10% | 5.00% | ▲ 1.1 pts |
“Despite the headwinds of 2025, we are pleased to present these positive results in the first quarter of 2025,” remarked John Gachora.
“The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality. The contraction in customer deposits and assets was driven by strategic initiatives focused on optimising funding costs and enhancing asset allocation efficiency.”
Gachora further noted, “Consequently, the effective cost of funds management has improved our net interest margin to 6.1 per cent, up from 5.0 per cent over the same period last year. To strengthen our financial resilience, we increased our impairment coverage to 63 per cent, while maintaining a healthy Non-performing loan (NPL) ratio of 11.9 per cent. Our focus on improved credit led to a lower cost of risk at 1 per cent. The Group remains effectively capitalised at 21.5 per cent with sufficient buffers providing the Group with the firepower to take advantage of growth opportunities”.