NCBA Group has reported a net profit of Sh5.5 billion for the first quarter of 2025, marking a 3.0 per cent rise from Sh5.3 billion recorded during the same period in 2024. 

The performance underscores the group’s resilient earnings momentum amid challenging macroeconomic conditions, bolstered by its diversified business model. 

Group Managing Director John Gachora attributed the solid first-quarter performance to resilient core income streams, improved asset quality, and effective cost of funds management. 

The group’s net interest margin rose to 6.1 per cent from 5 per cent last year, driven by strategic funding optimisation. Impairment coverage increased to 63 per cent while the NPL ratio held steady at 11.9 per cent.  

The cost of risk dropped to 1 per cent, and with a capital adequacy ratio of 21.5 per cent, the group remains well-positioned to pursue further growth. 

“Despite the headwinds of 2025, we are pleased to present these positive results in the first quarter of 2025. The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality,” Gachora said. 

The contraction in customer deposits and assets, he explained, was driven by strategic initiatives focused on optimising funding costs and enhancing asset allocation efficiency,” he said. 

NCBA Bank Kenya remained the engine of profitability, contributing 79 per cent of the group’s Sh6.8 billion profit before tax. Regional banking subsidiaries delivered Sh1.1 billion in profit before tax, accounting for 16 per cent of overall earnings, while non-banking subsidiaries collectively contributed Sh328 million or 5 per cent, reflecting growing traction across all segments. 

During that period, the group completed the integration of AIG (Kenya) Insurance Company, unveiling a refreshed brand identity under NCBA Insurance. This move strengthens the group’s foothold in Kenya’s Sh309 billion insurance market, signalling its intention to become a formidable player in the sector. 

The NCBA Investment Bank also made regional strides, selected by FSD Ethiopia to train Ethiopia Stock Exchange participants in investment banking—demonstrating its growing influence beyond Kenya. 

In line with its retail expansion strategy, NCBA reached 100 branches in Kenya with the opening of new outlets in Tatu City and Nord Mall, Ruiru. The launch of a new agency in Nyagatare, Rwanda, brought the group’s regional branch count to 121.  

Economic pressures 

NCBA also adjusted its lending rate in Kenya to 14.34 per cent per annum and maintained its monthly account maintenance fee waiver, offering relief to customers navigating economic pressures. 

On the digital front, the NCBA NOW mobile app introduced new capabilities for digital onboarding and payments, while CarDuka, the group’s digital car marketplace, added insurance features and AI-driven enhancements.  

The upgraded ConnectPlus platform for corporate and SME clients now offers faster transactions and expanded financial services integration. 

Recognition followed success. NCBA was named among the Top 25 ESG Corporations by Business Monthly EA, honoured at the DIAR Awards, and ranked second for Exceptional Customer Experience in the KBA 2024 survey. It also earned accolades in Asset Finance and training excellence in Tanzania. 

Looking ahead, Gachora noted that despite global economic uncertainties—with projected growth revised down to 2.8 per cent—the Kenyan economy remains resilient, buoyed by easing monetary policy. 

“According to the latest Government of Kenya economic update, while there is heightened uncertainty on the global economy projected to grow at 2.8 per cent in 2025 from the earlier projection of 3.3 per cent, the Kenyan economy continues to demonstrate resilience with the easing of monetary policy which will hopefully translate to improved private sector lending and consumer confidence,” he said. 

Gachora said NCBA remains steadfast in building a strong future-ready institution anchored on innovation, inclusivity and sustainable growth.  

“As we continue to reinforce customer obsession across the region, our focus remains clear in delivering shareholder value with excellence and creating impact to shape a better tomorrow for generations to come,” he said.