NCBA Profit After Tax Rises to KES 5.5 Billion in Q1 2025
NCBA Profit After Tax Rises to KES 5.5 Billion in Q1 2025
NCBA Group PLC has posted a profit after tax of KES 5.5 billion for the first quarter of 2025, representing a 3% increase from KES 5.3 billion recorded in Q1 2024.
Group Managing Director John Gachora attributed the growth to resilient core income streams and improved asset quality. He noted that a contraction in deposits and assets resulted from deliberate strategies to optimize funding costs and improve asset allocation.
NCBA’s net interest margin rose to 6.1%, up from 5.0% in the same period last year. The Group increased its impairment coverage to 63% and maintained a healthy non-performing loan (NPL) ratio of 11.9%. A focus on better credit management reduced the cost of risk to 1%. NCBA’s capital adequacy ratio remains strong at 21.5%, providing capacity for future growth.
Strong Business Diversification and Regional Expansion
NCBA’s diversified model continued to drive performance. NCBA Bank Kenya contributed 79% of the Group’s KES 6.8 billion profit before tax. Regional banking subsidiaries added KES 1.1 billion (16%), while non-banking subsidiaries contributed KES 328 million (5%).
NCBA Profit After Tax Rises to KES 5.5 Billion in Q1 2025
During the quarter, NCBA completed the integration of AIG Kenya Insurance and introduced the new NCBA Insurance brand, targeting growth in Kenya’s KES 309 billion insurance industry.
The Group expanded its physical presence with new branches at Tatu City and Nord Mall, Ruiru, reaching 100 branches in Kenya. A new branch in Nyagatare, Rwanda brought the regional total to 121.
Digital Advancements and Market Recognition
NCBA continued enhancing digital services. The NCBA NOW app now supports digital account opening and mobile money payments. CarDuka, the Group’s digital car marketplace, added insurance products and AI-powered improvements. The upgraded ConnectPlus platform for corporate and SME customers offers faster transactions, more payment options, and enhanced reporting tools.
To ease the burden on customers, NCBA reduced its Bank Kenya lending rate to 14.34% per annum and maintained a waiver on monthly account maintenance fees.
NCBA received several awards in recognition of its strategic and customer-focused efforts. These include being named among the Top 25 Corporations driving ESG by Business Monthly EA, recognition at the DIAR Awards, and second place in the 2024 KBA Customer Satisfaction Survey. It also earned accolades in asset finance and banking training in Tanzania.
Looking ahead, Gachora said the easing of Kenya’s monetary policy is expected to support private sector lending and consumer confidence. NCBA remains committed to building a future-ready, innovative, and inclusive institution while delivering long-term value for shareholders.
