High digital loans and customer deposits pushed up NCBA Group's net earnings by three per cent for the first three months of the year, hitting Sh5.5 billion compared to Sh5.3 billion same period last year.
According to the lender's financial results released on Wednesday. it disbursed Sh307 billion in digital loans during the period under review, signalling a 32 per cent increase while deposits surged 9.5 per cent to Sh496 billion.
Commenting on results, NCBA managing director and CEO, John Gachora said that they were happy with the positive results despite the headwinds of 2025t.
"The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality. The contraction in customer deposits and assets was driven by strategic initiatives focused on optimising funding costs and enhancing asset allocation efficiency,'' Gachora said.
The effective cost of funds management improved the bank's net interest margin to 6.1 per cent up from five per cent over the same period last year.
"'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 one per cent."
The Group remains effectively capitalised at 21.5 per cent with sufficient buffers providing the firepower to take advantage of opportunities for growth.
Operating income rose by eight per cent to Sh17.3 billion while expenses rose nine per cent to Sh8.9 billion. This was due to provision for credit losses which rose by 20.3 per cent to Sh1.6 billion.
The lender's total assets rose by 5.6 per cent to Sh656 billion, stamping its authority as the fourth largest bank in the country.
he Group`s business diversification played a pivotal role where NCBA Bank Kenya remained a key driver contributing 79 per cent of the Group’s Sh6.8 billion profit before tax.
The regional banking subsidiaries delivered profit before tax of Sh1.1billion, contributing a solid 16 per cent to the Group`s overall profitability and underscoring their growing strategic importance.
The Non-Banking subsidiaries delivered a consolidated positive profit of Sh328 million, contributing five per cent to Group profitability.
During the quarter, NCBA completed the integration of the recently acquired AIG (Kenya) Insurance Company when it unveiled a new brand identity for the now NCBA Insurance subsidiary, reinforcing its commitment to seize share in Kenya’s sizeable insurance industry valued at Sh309 billion.
NCBA reached the 100 Branch mark in Kenya with the official launch of Tatu City branch and the opening of its newest branch at the Nord Mall, Ruiru.
Additionally, the new Nyagatare Agency branch in Rwanda brings the Group`s total branch network across the region to 121.
To compliment improved access to banking services, NCBA further reduced its lending rate to 14.34 per cent p.a. and continued with the monthly account maintenance fees waiver initiative to help customers navigate the macro-economic environment with ease.
