 |
| NCBA Group Managing Director, John Gachora. |
NAIROBI, Kenya; August 6, 2026 – NCBA Group PLC has reported a 12.2 per cent increase in profit after tax to KES 12.4 billion for the six months ended June 30, 2026, reflecting resilient business growth, strong customer activity, and continued investment in technology and regional expansion.
The Group's operating income increased by 15.1 per cent to KES 40.7 billion, while profit before tax rose 14.3 per cent to KES 15.5 billion, underlining the strength of its diversified banking and financial services business across East Africa.
The Board also declared an interim dividend of KES 3.75 per share, up from KES 2.50 paid during the corresponding period in 2025, rewarding shareholders with a higher payout following the improved financial performance.
Strong Balance Sheet Growth
NCBA continued to strengthen its balance sheet during the first half of the year, with customer deposits rising 11.0 per cent to KES 551 billion, while total assets grew 11.5 per cent to KES 739 billion.
The Group also maintained robust digital momentum, disbursing KES 819 billion in digital loans, representing a 26.9 per cent year-on-year increase, highlighting the growing adoption of its digital lending platforms.
Although operating expenses increased modestly by 5.1 per cent to KES 19.5 billion, provisions for credit losses rose to KES 5.2 billion from KES 3.2 billion a year earlier, reflecting the Group's prudent approach to managing risks in the current operating environment.
CEO Highlights Resilient Performance
Commenting on the results, NCBA Group Managing Director John Gachora said the bank delivered a resilient performance despite a challenging operating environment characterized by inflationary pressures and cautious monetary policy across the region.
He attributed the strong results to disciplined execution of the Group's UBUNTU Strategy, which continues to drive healthy business volumes, improved margins, and sustained customer activity.
According to Gachora, NCBA maintained strong balance sheet momentum through disciplined lending while keeping non-performing loans at 10.5 per cent, significantly below Kenya's banking industry average of 15.3 per cent.
He added that the increased credit loss provisions position the Group to absorb potential risks while preserving long-term financial stability.
The Group also maintained a healthy Return on Average Equity (ROAE) of 19.0 per cent alongside a capital adequacy ratio of 21.7 per cent, providing a solid foundation for future growth and strategic investments.
Kenya Remains Largest Profit Contributor
NCBA's Kenyan banking subsidiary remained the Group's largest earnings contributor, recording a 24.3 per cent increase in profitability to KES 13.7 billion, supported by disciplined funding cost management.
Regional subsidiaries in Uganda, Tanzania and Rwanda generated a combined KES 1.6 billion in profit, driven by:
- 25 per cent growth in lending.
- 11 per cent growth in income.
- Improved recoveries across the markets.
Meanwhile, the Group's non-banking businesses—including NCBA Investment Bank, Leasing, Bancassurance and NCBA Insurance—delivered a combined KES 1.1 billion in profit, representing 40 per cent growth year-on-year, demonstrating the strength of NCBA's diversified business model.
Technology Investment Accelerates Digital Transformation
NCBA invested KES 2.4 billion in technology infrastructure during the period to accelerate artificial intelligence adoption, strengthen cybersecurity, and modernize its core banking operations.
These investments helped improve system reliability to 99.68 per cent uptime, while the Group's Digital Net Promoter Score (NPS) increased to 69 per cent, reflecting higher customer satisfaction.
The bank also expanded its ConnectPlus business banking platform across its regional markets to provide businesses with a seamless and standardized digital banking experience.
Wealth Management and SME Banking Continue to Expand
NCBA continued to strengthen its wealth management business, growing Assets Under Management (AUM) to KES 101 billion while surpassing 60,000 active wealth clients.
Digital banking continued to dominate customer transactions, with 94 per cent of all transactions conducted through mobile banking channels.
The Group also expanded insurance services across its customer base, with:
- NCBA Insurance Gross Written Premiums reaching KES 2.1 billion.
- Bancassurance Gross Written Premiums increasing to KES 2.3 billion.
Support for small and medium-sized enterprises (SMEs) remained a strategic priority, with the Group's SME loan portfolio growing 12 per cent to KES 44.7 billion, up from KES 39.9 billion last year.
Asset Finance and Retail Banking Drive New Growth
NCBA continued to expand its leadership in asset finance, particularly through financing solutions supporting electric vehicles (EVs) and solar leasing, helping the bank achieve an estimated 30 per cent market share in Kenya's asset finance sector.
Its digital vehicle marketplace CarDuka facilitated vehicle sales worth KES 1.94 billion, while the KOMIUT digital transport platform processed collections exceeding KES 117 million.
Retail banking growth was supported by the Group's network of 123 branches across the region, alongside digital customer onboarding initiatives and targeted campaigns such as:
- BOOSTA for SMEs.
- EasyBuild property finance.
- Diaspora banking solutions.
These initiatives enabled NCBA to acquire more than 10,000 new core banking customers every month, while expanding its retail loan portfolio by 54 per cent.
Nedbank Transaction Progressing
NCBA confirmed that its proposed transaction with Nedbank continues to progress as planned.
The tender offer successfully closed on 10 July 2026, attracting shareholder support equivalent to 121 per cent oversubscription. Completion of the transaction remains subject to regulatory approvals and the fulfilment of remaining conditions.
Sustainability and People Investments
The Group continued advancing its Change The Story sustainability agenda through green financing initiatives, including participation in the oversubscribed KES 3 billion Kenya Mortgage Refinance Company (KMRC) bond and regional electric vehicle financing programmes.
During the period, NCBA:
- Nurtured and planted more than 340,000 trees.
- Positively impacted over 400,000 livelihoods through community programmes.
- Strengthened its brand, with demand power reaching 7.1 per cent and consideration rising to 49 per cent in Kenya.
- Invested over 100,000 employee learning hours for its workforce of more than 4,000 employees.
- Achieved a 91 per cent employee retention rate after being certified as a Top Employer.
Outlook
Looking ahead, Gachora acknowledged continued uncertainty in the global economy, with worldwide growth projected at 3.1 per cent in 2026.
However, he expressed confidence that stronger private sector credit growth in Kenya and expected completion of several regional investment transactions in the second half of the year will create new opportunities.
He said the Group remains committed to executing its UBUNTU strategy to unlock sustainable growth and deliver long-term value for customers, shareholders, employees, and the communities it serves.
Key H1 2026 Financial Highlights
- Profit After Tax: KES 12.4 billion (+12.2%)
- Profit Before Tax: KES 15.5 billion (+14.3%)
- Operating Income: KES 40.7 billion (+15.1%)
- Customer Deposits: KES 551 billion (+11.0%)
- Total Assets: KES 739 billion (+11.5%)
- Digital Loans: KES 819 billion (+26.9%)
- Interim Dividend: KES 3.75 per share (up from KES 2.50)
- Capital Adequacy Ratio: 21.7%
- Return on Average Equity: 19.0%
For more banking, finance and corporate news from across East Africa, keep following the Kitomari Banking & Finance Blog.
No comments:
Post a Comment