The Lower Eastern Times Opening The Third Eye
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NCBA Group’s net profit rose by 3 percent to Sh5.5 billion in the first quarter of 2025, up from Sh5.3 billion during the same period in 2024.
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The growth was largely fueled by the strong performance of NCBA Bank Kenya, which accounted for 79 percent of the group’s Sh6.8 billion pre-tax profit. Regional subsidiaries contributed Sh1.1 billion, while non-banking arms added Sh328 million.
Group Managing Director John Gachora said the results highlight the resilience of the group’s core revenue streams and improved asset quality through robust recovery efforts.
He noted that the slight decline in customer deposits and assets was a result of deliberate strategies aimed at reducing funding costs and optimizing asset allocation.
NCBA’s total operating income increased by 8 percent year-on-year to Sh17.3 billion. Digital lending grew significantly, with disbursements hitting Sh307 billion — a 32 percent rise.
“Our effective cost of funds management helped lift the net interest margin to 6.1 percent from 5.0 percent last year,” Gachora said.
To enhance financial stability, the bank boosted its impairment coverage to 63 percent and kept its non-performing loan (NPL) ratio at a relatively stable 11.9 percent. The cost of risk also dropped to 1 percent, reflecting improved credit quality.
Gachora added that the group remains well-capitalized at 21.5 percent, giving it ample capacity to seize new growth opportunities.
Despite the positive earnings, NCBA’s provision for credit losses rose by 20.3 percent to Sh1.6 billion, while total assets growth slowed, reaching Sh656 billion.
