NCBA Investment Bank delivered an impressive performance in the first half of 2025 supported mainly by strong growth in profitability and customer expansion.

The stellar financial performance by NCBA Investment Bank was also powered by a successful pivot toward wealth management and fund management services.

The bank recorded a Profit Before Tax (PBT) of Sh388.8 million for the six months ended June 30, 2025, more than double the Sh157.3 million posted in the same period last year.

Profit After Tax also surged significantly to Sh278.2 million from Sh110.8 million, underscoring the strength of the NCBA Investment Bank’s strategy and execution.

Revenue Growth

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During the period in review, interest income rose to Sh39.3 million, up from Sh30.3 million in 2024, as brokerage commissions more than doubled to Sh67.8 million from Sh32 million.

Fund management was the standout performer, with fees climbing to Sh446.6 million up from Sh302.7 million last year, cementing the segment as a core driver of the bank’s growth.

Fees for advisory and consultancy services also posted a steady gain, up to Sh54.9 million from Sh54.1 million for the same period last year.

On the expense side, the Bank strategically tightened its belt, with professional fees down dropping notably to Sh3.6 million from Sh14.2 million, showing greater operation efficiency.

But employee costs rose to Sh131.7 million from Sh118.7 million due to investment in talent to support growth, as depreciation expenses also surged to Sh1.5 million from Sh1.1 million.

Growing Client Base & Assets

Significantly, NCBA Investment Bank’s expanded its market footprint with clients surpassing the 50,000 mark, driven by digital onboarding initiatives and cross-selling of products to existing NCBA Group customers.

At the same time, Assets Under Management (AUM) expanded to Sh86 billion in the period under review, affirming rising investor confidence in NCBA’s wealth management products.

This performance reflects the Bank’s deliberate strategy to reduce reliance on traditional brokerage and advisory services by offering diversified investment and wealth solutions.

Strong Market Wave

Additionally, the broader industry context also worked in NCBA’s favor.

The Kenyan investment banking sector witnessed a robust rebound in the first half of 2025, buoyed by a surge in bond and securities trading at the Nairobi Securities Exchange (NSE).

Stockbrokers and investment banks collectively realised a 156 per cent spike in net profits to Sh1.1 billion, with sector-wide brokerage commissions rising 49 per cent to Sh1.46 billion.

This remarkable resurgence marked a sharp departure from years of sluggish returns, highlighting a renewed vibrancy in Kenya’s capital markets.

NCBA Investment Bank’s ability to capture this momentum while also pushing into fund management underscores its dual advantage of market timing and strategic foresight.

Strategic Positioning

The results confirm that NCBA Investment Bank’s diversification strategy is paying off.

By scaling up fund management services and wealth products, while continuing to grow its brokerage and advisory businesses, the Bank has created a balanced revenue model that is less exposed to market volatility.

The blend of digital innovation, cross-sell synergies within NCBA Group, and new client acquisition positions the Investment Bank to sustain growth in the second half of 2025 and beyond.

Key Lessons

For Kenya’s wider financial services industry, NCBA Investment Group’s HY 2025 performance offers two clear lessons for the wider sector:

1. Diversification is key: relying solely on brokerage is no longer enough; wealth and fund management are the future.

2. Technology and digital onboarding matter: client growth will increasingly hinge on seamless digital channels.

As competition intensifies, investment banks that adapt quickly and broaden their product offering will be best placed to capture rising investor interest in both equities and fixed income markets.