NCBA Bets on Digital Growth and Regional Expansion as Profit Hits KSh 23.4 Billion

NCBA Group PLC posted a net profit of KSh 23.4 billion for the full year 2025, a 7.0 percent increase from KSh 21.9 billion in 2024, but the results were weighed down by a sharp rise in credit loss provisions, pointing to growing pressure in the lending environment.

The Group’s provisions for credit losses jumped by 46.3 percent to KSh 8.0 billion, signaling heightened caution amid rising default risks even as overall performance remained strong.

Despite this, profit before tax rose by 10.9 percent to KSh 27.9 billion, while operating income grew by 17.0 percent to KSh 73.3 billion, in line with a similar 17.0 percent increase in operating expenses to KSh 37.5 billion.

Digital lending continued to drive growth, with KSh 1.4 trillion disbursed—up 33 percent—reinforcing the bank’s position in technology-led financial services. Customer deposits increased by 6.0 percent to KSh 532 billion, while total assets rose by 8.0 percent to KSh 716 billion.

The lender also announced a higher dividend payout of KSh 11.7 billion, up from KSh 9.1 billion, with a final dividend of KSh 7.10 per share, signaling confidence in its financial position despite rising credit risks.

Group Managing Director John Gachora said the results mark the close of the 2020–2025 strategy, which has strengthened the institution through diversification and digital transformation.

During the period, NCBA doubled its customer base, expanded its branch network from 89 to 123, and maintained over 30 percent market share in asset finance, while its digital business contributed 32 percent of profitability, generating KSh 9.0 billion in profit before tax.

The Kenya subsidiary remained the main earnings driver, contributing 82 percent of profit before tax at KSh 22.9 billion, while regional subsidiaries delivered KSh 3.6 billion and non-banking units KSh 1.9 billion.

Looking ahead, the Group has unveiled its 2026–2030 “Ubuntu Strategy” aimed at strengthening core operations, scaling high-growth segments, and expanding into new markets.

It also highlighted potential gains from a proposed 66 percent acquisition by Nedbank Group, expected to enhance capital strength, diversify risk, and unlock access to international markets.

While profitability and digital growth remain strong, the spike in loan loss provisions underscores emerging risks that could shape the bank’s outlook in the coming financial year.