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NCBA profit up to Sh6bn on higher net interest income
NCBA Group Managing Director and CEO John Gachora during a media briefing to announce their half year financial result release at Radison Blu Hotel in Nairobi on August 24, 2023.
NCBA Group net profit for three months ended March 2026 rose by 8.8 percent to Sh5.96 billion, helped by a rise in net interest income as cost of funds fell.
The growth in net earnings was from Sh5.48 billion posted in the previous similar quarter and came on the back of net interest income growing by 22 percent to Sh12.16 billion from Sh9.97 billion.
The review period saw NCBA’s non-interest income rise by 6.3 percent to Sh7.83 billion, taking the operating income to Sh19.99 billion from Sh17.33 billion.
“The group delivered strong topline momentum, with operating income increasing by 15 percent year-on-year, reflecting sustained business growth, improved revenue diversification and continued resilience across core operating segments,” said John Gachora, managing director at NCBA.
During the review period, NCBA increased the provisioning for non-performing loans (NPLs) by 56.3 percent to Sh2.54 billion from Sh1.62 billion. The lender bucked the industry trend where its peers such as Co-operative Bank of Kenya, KCB Group and Equity Group have cut down the amount set aside for potential loan defaults.
The higher provisioning for NPLs, added to a 13.6 percent rise in staff costs to Sh4.19 billion and lifted NCBA’s operating expenses by 16.6 percent to Sh12.24 billion from Sh10.5 billion.
“Increase in impairment charges to Sh2.5 billion was driven by a prudent approach to credit risk assessment given the heightened volatile operating environment,” said Mr Gachora.
The group’s main subsidiary, NCBA Bank Kenya, was the key profitability driver, with pre-tax earnings rising 20.4 percent to Sh6.53 billion —equivalent to 87.9 percent of group net profit.
Regional operations in Uganda, Tanzania, and Rwanda delivered a combined pre-tax profit of Sh707 million while non-banking subsidiaries including NCBA Investment Bank, NCBA Leasing, and NCBA Bancassurance, accounted for Sh641 million gross earnings.
The lender has been growing its physical reach as well as digital channels to boost its business. In asset finance, the bank said its digital vehicle trading platform called CarDuka had onboarded close to seven million users by end of the quarter.
NCBA said it disbursed digital loans worth Sh391 billion in the first quarter of the year, maintaining its lead in digital credit, fueled by products such as Mshwari.
Commenting on the impending acquisition of a majority stake in NCBA by South Africa’s Nedbank Group, Mr Gachora said the transaction progresses according to plan.
“The proposed transaction with Nedbank Group Limited continues to progress in line with plan, with key deal milestones currently on track and proceeding as anticipated, “ said Mr Gachora.
“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.”
