NCBA Group PLC has posted a 7% increase in net profit to KES 23.4 billion (about UGX 660 billion) for the year ended 2025, driven by stronger asset growth, improved margins, and a surge in digital lending.
The lender’s results show profit before tax grew 10.9% to KES 27.9 billion (UGX 787 billion), while operating income rose 17% to KES 73.3 billion (UGX 2.07 trillion). The Group attributes the performance to a more diversified business model that is delivering results across both banking and non-banking units.
NCBA also announced a higher dividend payout of KES 11.7 billion (UGX 331 billion), up from KES 9.1 billion (UGX 257 billion) in 2024, reflecting improved returns for shareholders as the Group enters a new growth phase.
Strong Finish to 2020–2025 Strategy
Group Managing Director John Gachora said the results mark a successful close to the bank’s 2020–2025 strategy, which focused on growth, diversification, and digital transformation.
“The 2025 outcomes are a great milestone to close out our five-year plan. Disciplined execution and enhanced diversification have delivered a more robust institution with momentum to carry us forward,” he said.
Regional Markets Drive Performance
NCBA’s regional subsidiaries, including Uganda, contributed significantly, generating KES 3.6 billion (UGX 102 billion) in profit before tax and accounting for 13% of total earnings. Lending and deposits in these markets grew around 14% year-on-year, reflecting strong recovery and growth potential in Uganda, Tanzania, and Rwanda.
Uganda remains a key growth market, particularly in retail banking, SME financing, digital financial services, and property lending, with rising urbanization and digital adoption driving demand.
Digital Lending Reaches Milestone
Digital lending was a key growth driver, with disbursements reaching KES 1.4 trillion (UGX 39.6 trillion), up 33% from the previous year. Investments in artificial intelligence, machine learning, and data analytics strengthened credit scoring and maintained low default rates.
Digital financial services now account for 32% of total Group profitability, making them a major pillar of NCBA’s business. The digital strategy focuses not only on scale and speed but also on risk management, customer targeting, and long-term sustainability.
Assets, Deposits, and Branch Expansion
NCBA’s total assets grew 8% to KES 716 billion (UGX 20.2 trillion), while customer deposits rose 6% to KES 532 billion (UGX 15 billion). Loan growth also picked up, reflecting strong credit demand across markets.
Despite the shift to digital channels, the bank continues to expand its physical branch network, currently comprising 123 branches across five markets, meeting customer demand for in-person relationship building and service delivery.
Non-Banking Units Strengthen Growth
NCBA’s non-banking businesses, including investment banking, leasing, and insurance, also performed strongly. Wealth management stood out, with assets under management rising from KES 25 billion (UGX 705 billion) at merger to over KES 100 billion (UGX 2.84 trillion) today. The growth reflects synergies between core banking and investment banking, allowing customers to access a wider range of products.
Five-Year Strategy: Ubuntu 2026–2030
Looking ahead, NCBA unveiled its new five-year strategy, Ubuntu (2026–2030), themed “Banking on Belief – Empowering Ambitions.” The plan focuses on four priorities: strengthening core banking, scaling high-growth segments including wealth, consumer, SME, and insurance, unlocking new growth opportunities, and building a future-ready operating model.
The strategy aims to deepen competitiveness and expand regional presence, including Uganda. NCBA is also exploring opportunities linked to a proposed acquisition by South Africa’s Nedbank, expected to enhance capital, liquidity, and regional expansion.
Optimistic Outlook
NCBA remains optimistic about growth in Uganda and across East Africa, citing strong economic fundamentals, a youthful population, and rising financial services demand. The bank reaffirmed its commitment to sustainability, including green financing, youth empowerment, community programmes, and environmental initiatives.
“We are proud of our progress and excited about the future. We remain committed to delivering value for our customers, shareholders, and communities,” Gachora said.
