NCBA Group PLC reported a Sh5.5 billion profit after tax for the first quarter of 2025, marking a 3.0 per cent rise from Sh5.3 billion posted in the same period last year.

The Group’s profit before tax reached Sh6.8 billion, a 4.5 per cent increase year-on-year, while operating income grew by 8 per cent to Sh17.3 billion.

Operating expenses were recorded at Sh8.9 billion, up 9 per cent from the previous year.

Digital loans disbursed in the quarter totalled Sh307 billion, reflecting a 32 per cent year-on-year growth.

Provision for credit losses rose sharply to Sh1.6 billion, a 20.3 per cent increase compared to the first quarter of 2024.

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Meanwhile, customer deposits declined to Sh496 billion, a 9.5 per cent drop. Total assets also contracted by 5.6 per cent to close at Sh656 billion.

The Group's net interest margin improved from 5.0 per cent to 6.1 per cent. Impairment coverage was strengthened to 63 per cent, and the cost of risk decreased to 1 per cent.

The non-performing loan (NPL) ratio stood at 11.9 per cent, while the capital adequacy ratio remained strong at 21.5 per cent.

NCBA Bank Kenya remained the primary contributor to Group earnings, accounting for 79 per cent of the Sh6.8 billion profit before tax.

Regional banking subsidiaries contributed Sh1.1 billion, representing 16 per cent of pre-tax profits, while non-banking subsidiaries added Sh328 million, making up 5 per cent.

Commenting on the financials, NCBA Group Managing Director John Gachora explained the foundation of the performance.

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

He further pointed to improvements in key financial ratios.

“Consequently, the effective cost of funds management has improved our net interest margin to 6.1 per cent up from 5.0 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," Gachora said.

"Our focus on improved credit led to a lower cost of risk at 1 per cent. The Group remains effectively capitalised at 21.5 per cent with sufficient buffers providing the Group the firepower to take advantage of opportunities for growth.”

Looking ahead, Gachora commented on the broader economic outlook.

“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.

He concluded by reaffirming NCBA’s long-term strategic focus.

“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.