NCBA Group PLC has reported a 12.2 per cent increase in profit after tax to KES 12.4 billion (about Shs 334.8 billion) for the first half of 2026, underscoring steady growth across its regional operations despite a challenging macroeconomic environment.
The lender’s results show operating income rising by 15.1 per cent year-on-year to KES 40.7 billion (about Shs 1.1 trillion), while profit before tax grew by 14.3 per cent to KES 15.5 billion (about Shs 418.5 billion). Customer deposits also recorded strong growth, closing at KES 551 billion (about Shs 14.9 trillion), with total assets increasing to KES 739 billion (about Shs 20 trillion).
NCBA attributed the performance to resilient business volumes, improved margins and sustained customer activity, even as inflationary pressures and cautious monetary policies shaped the operating environment across the region.
“The first half of 2026 was marked by a dynamic operating environment,” Group managing director John Gachora said. “Our focused execution of the UBUNTU strategy has ensured resilient income growth and strengthened business momentum.”
The group, however, increased provisions for credit losses to KES 5.2 billion (about Shs 140.4 billion) from KES 3.2 billion (about Shs 86.4 billion) in the same period last year, reflecting heightened risk awareness amid economic uncertainty. Despite this, asset quality remained relatively stable, with non-performing loans at 10.5 per cent, below the Kenyan market average of 15.3 per cent.
Regionally, NCBA’s Kenyan banking subsidiary remained the primary profit driver, recording a 24.3 per cent increase in profitability to KES 13.7 billion (about Shs 369.9 billion). Subsidiaries in Uganda, Tanzania and Rwanda delivered a combined profit of KES 1.6 billion (about Shs 43.2 billion), supported by strong lending growth and improved income streams.
The group’s non-banking units—including investment banking, leasing, bancassurance and insurance—also posted robust performance, with profits rising 40 per cent to KES 1.1 billion (about Shs 29.7 billion). This, NCBA said, highlights the strength of its diversified business model.
Digital banking continued to play a central role, with mobile channels accounting for 94 per cent of transaction volumes. Digital loans disbursed grew by 26.9 per cent to KES 819 billion (about Shs 22.1 trillion), while investments of KES 2.4 billion (about Shs 64.8 billion) in technology infrastructure enhanced system resilience and customer experience.
NCBA said it is also scaling high-growth segments, with assets under management in its wealth business rising to KES 101 billion (about Shs 2.7 trillion) and active wealth clients surpassing 60,000. Growth in SME lending saw the loan book expand by 12 per cent to KES 44.7 billion (about Shs 1.2 trillion).
The group further pointed to strategic partnerships in asset financing, including electric vehicle and solar leasing initiatives, as key drivers of future growth. Its digital platforms—CarDuka and KOMIUT—also recorded notable transaction volumes, reflecting increased uptake of digital services.
Meanwhile, the proposed transaction involving Nedbank is progressing, with the tender offer closing in July 2026 after attracting strong shareholder support. Completion remains subject to regulatory approvals.
NCBA also declared an interim dividend of KES 3.75 per share (about Shs 101), up from KES 2.50 (about Shs 68) in the previous year, signalling confidence in its financial position. The group maintained a strong capital adequacy ratio of 21.7 per cent and return on equity of 19 per cent.
Looking ahead, the bank acknowledged global economic uncertainty, with growth projections for 2026 estimated at 3.1 per cent. However, it remains optimistic about regional opportunities, citing expected expansion deals and improving private sector credit growth.
“We remain confident in the strength of our UBUNTU strategy and our ability to unlock new growth opportunities that will generate long-term value,” Gachora said.
