NCBA Group Profit After Tax Rises 9% to Ksh 6 Billion in Q1 2026

NCBA Group PLC Managing Director John Gachora in a past event. PHOTO/ File

NCBA Group PLC’s profit after tax rose to Ksh 6 billion for Q1 2026 from Ksh 5.5 billion reported during the same period the previous year, representing 9% increase.

According to the financial results released by the bank, operating income rose to Ksh 20 billion, representing a 15% year-on-year growth, while profit before tax climbed to Ksh 7.4 billion, up 9% from a similar period last year.

Profit after tax also increased by 9 per cent to Ksh 6 billion.

Operating expenses stood at Ksh 9.7 billion, an 8% rise year-on-year, while provisions for credit losses surged by 56% to Ksh 2.5 billion amid heightened economic uncertainty.

The bank also reported significant growth in customer activity and digital services.

Digital loans disbursed during the quarter reached Ksh 391 billion, an increase of 27% year-on-year, while customer deposits rose to Ksh 544 billion, up 10 per cent.

Total assets expanded to Ksh 741 billion, representing a 13% increase compared to the same period in 2025.

Digital Lending and Regional Units Boost Performance

NCBA Group Managing Director John Gachora said the lender had made a strong start to the year despite operating in a challenging environment.

“As we present our financial results for the first quarter of 2026, I am pleased to report that the Group has delivered a strong start to our new strategy anchored on four pillars: Fortifying the Core, Scaling High-Growth Segments, Unlocking New Frontiers, and Powered by a Future Ready Ubuntu purpose-driven culture,” Gachora said.

“The Group delivered strong topline momentum, with operating income increasing by 15 per cent year-on-year, reflecting sustained business growth, improved revenue diversification and continued resilience across core operating segments,” Gachora added.

Gachora further noted that the lender had taken a prudent approach in managing credit risks amid evolving market conditions.

“Increase in impairment charges to Ksh 2.5 billion was driven by a prudent approach to credit risk assessment given the heightened volatile operating environment,” the MD noted.

The bank maintained that its capital position remained strong, with a total capital adequacy ratio of 21.8%, well above the regulatory minimum of 14.5%.

Return on average equity also remained stable at 18.4%.

“Our capital position remained robust, with a total capital adequacy ratio of 21.8%, well above the regulatory minimum of 14.5 per cent. The return on average equity (ROAE) remained stable at 18.4%, reflecting our continued long-term commitment to delivering value to our shareholders,” Gachora said.

Subsidiaries Record Strong Growth

NCBA said its Kenyan banking subsidiary remained the group’s largest profitability driver after posting a profit before tax of Ksh 6.5 billion.

Regional subsidiaries in Uganda, Tanzania, and Rwanda also recorded steady growth, contributing a combined profit before tax of Ksh 707 million.

Non-banking subsidiaries, including NCBA Investment Bank, NCBA Insurance, leasing, and bancassurance operations, equally posted strong performances.

NCBA Investment Bank achieved positive outcomes with assets under management rising to Ksh 101.5 billion and the number of wealth customers surpassing 60,000.

The lender also expanded its insurance business by embedding insurance products into customer journeys, with NCBA Insurance and BancAssurance posting a combined gross written premium of Ksh 5 billion.

On operational efficiency, NCBA said service uptime improved to 99.74% following investments in technology infrastructure, cybersecurity protection, and artificial intelligence-powered customer experience systems.

The lender also recorded a Net Promoter Score of 62 and received recognition by the Kenya Bankers Association 2025 Customer Experience Survey.

The lender’s strategy to scale high-growth segments continued to focus on digital channels and SME financing.

NCBA disclosed that its digital vehicle financing platform CarDuka had onboarded close to seven million users.

The bank also launched the Ksh 35 million digitally accessible SME lending product dubbed NCBA BOOSTA to support small businesses.

According to the lender, 98 per cent of all transactions are now digital.

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Focus on Sustainability and Outlook

Beyond financial performance, NCBA highlighted its commitment to sustainability and community development during the quarter.

NCBA said it positively impacted over 200,000 livelihoods through initiatives targeting environmental conservation, sports sponsorship, and youth empowerment.

The bank planted more than 200,000 trees under its environmental conservation programme.

NCBA also disclosed that it acted as the lead arranger for the KMRC green bond that raised Ksh 3 billion and served as trustee and receiving bank for the Ksh 4.8 billion Tatu City Real Estate Investment Trust and the Ksh 190 million green financing initiative under the TRIFIC Green Income Real Estate Investment Trust.

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Looking ahead, Gachora said the proposed transaction involving Nedbank Group Limited was progressing as planned.

“The proposed transaction with Nedbank Group Limited continues to progress in line with plan, with key deal milestones currently on track and proceedings anticipated,” Gachora lamented.

He, however, cautioned that the evolving geopolitical situation in the Middle East could still affect markets and liquidity conditions.

“The Group has not experienced any material impact arising from the evolving Middle East geopolitical situation to date; however, management continues to closely monitor developments and assess potential implications on markets, liquidity, inflation, and broader macroeconomic conditions,” Gachora cautioned.

Gachora maintained that the lender would continue focusing on disciplined execution to sustain long-term growth and shareholder value.

“Our disciplined execution strategy will continue to generate enduring value for our shareholders while embracing boundless possibilities guided by the UBUNTU philosophy of collective success,” Gachora concluded.

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