NAIROBI, Kenya, May 21 – NCBA Group profit after tax grew by three percent to Sh5.5 billion in three months to March this year, an improvement from Sh5.3 billion recorded during a similar period in 2024.
Whereas NCBA Bank Kenya contributed 79 percent of the group’s Sh6.8 billion gross profit, regional subsidiaries brought in Sh1.1 billion. Similarly, non-banking subsidiaries pumped in Sh328 million into the entity.
“The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality,” NCBA Group Managing Director John Gachora said.
“The contraction in customer deposits and assets was driven by strategic initiatives focused on optimizing funding costs and enhancing asset allocation efficiency.”
Overall, the group’s operating income grew by eight percent year-on-year to Sh17.3 billion. On the other hand, digital loans went up to Sh307 billion, representing a 32 percent growth.
“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,” Gachora added.
“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 capitalized at 21.5 per cent with sufficient buffers providing the Group the firepower to take advantage of opportunities for growth.”
However, its credit losses provision increased by 20.3 percent to Sh1.6 billion, with total assets also slowing to Sh656 billion.
