NCBA Group reported a 12.6% year-on-year rise in net profit to Ksh11.1 billion ($85.8 million) for the first half of 2025, up from Ksh9.8 billion ($75.7 million) in H1 2024.
The growth was driven by a 26.7% increase in net interest income, which rose to Ksh20.9 billion ($161.6 million), supported by higher lending and investments in government securities.
However, non-interest income dipped 2.9% to Ksh14.5 billion ($112.1 million), weighed down by a 34% drop in foreign exchange trading income. Operating expenses rose 13.5% to Ksh21.8 billion ($168.6 million), while provisions for credit losses increased 19.1% to Ksh3.2 billion ($24.8 million), reflecting a cautious risk posture.
Regional Strength and Diversified Growth
Kenya contributed 81% of NCBA’s pre-tax profit, with regional subsidiaries adding Ksh1.8 billion ($13.9 million). Non-banking units—including NCBA Investment Bank and NCBA Insurance—posted a 40% increase in earnings to Ksh804 million ($6.2 million).
The group now operates 122 branches across East Africa, including over 100 in Kenya, and retained its leadership in asset finance with a 31% market share.
Sustainability and Capital Resilience
NCBA advanced its sustainability agenda by mobilising Ksh9.5 billion in green financing, planting nearly 400,000 trees, and supporting over 9,200 jobs through community initiatives. Capital adequacy stood at 22.4%, well above regulatory thresholds, and the board declared an interim dividend of Ksh2.50 per share, an 11.1% increase from H1 2024.
Balance Sheet Contraction and Asset Quality Gains
Total assets declined 3.8% to Ksh663 billion ($5.13 billion), driven by a 7% contraction in the loan book and a 1.3% dip in government securities. Customer deposits fell 6% to Ksh497 billion, while borrowings dropped 10.5% to Ksh8.5 billion.
Despite the contraction, asset quality improved. The gross non-performing loan (NPL) ratio fell to 12.18%, supported by a 6.8% decline in gross NPLs and a 2.3% increase in general provisions. Shareholders’ equity rose 16.8% to Ksh118.5 billion ($912.8 million), fueled by an 18.8% increase in retained earnings.
Key Financial Metrics
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Net Profit | Ksh11.1B | Ksh9.8B | +12.6% |
| Net Interest Income | Ksh20.9B | Ksh16.5B | +26.7% |
| Non-Interest Income | Ksh14.5B | Ksh14.9B | -2.9% |
| Operating Expenses | Ksh21.8B | Ksh19.2B | +13.5% |
| Total Assets | Ksh663B | Ksh689.1B | -3.8% |
| Customer Deposits | Ksh497B | Ksh528.9B | -6.0% |
| Core EPS | Ksh6.7 | Ksh6.0 | +12.6% |
| Dividend | Ksh2.50 | Ksh2.25 | +11.1% |
Strategic Outlook
Headquartered in Nairobi, NCBA Group is a non-operating holding company with subsidiaries in Tanzania, Rwanda, Uganda, and Côte d’Ivoire. Formed in 2019 through the merger of NIC Bank and Commercial Bank of Africa, the group continues to solidify its position as a regional financial powerhouse.
