NCBA Declares Sh23.4B Profit, Boosts Dividends Amidst New Strategy

NCBA Group PLC has announced a robust financial performance for the fiscal year ending 2025, reporting a net profit of Sh23.4 billion. This figure represents a significant 7 per cent increase compared to the Sh21.9 billion profit recorded in the preceding year, 2024. The strong financial results are set to translate into a more generous dividend distribution for the group’s shareholders.

Enhanced Shareholder Returns

The total dividends distributed by NCBA Group PLC saw a notable rise, climbing to Sh11.7 billion from Sh9.1 billion in the previous year. Reflecting this positive trend, the board has recommended a final dividend of Sh7.10 per share, bringing the aggregate dividend payout for the fiscal year to this enhanced level.

Key Financial Highlights

The group’s profitability metrics demonstrate a healthy upward trajectory:

• Profit Before Tax: Stood at Sh27.9 billion, an impressive 10.9 per cent increase year-on-year.
• Operating Income: Experienced substantial growth, rising by 17 per cent to reach Sh73.3 billion.
• Operating Expenses: Mirrored the growth in income, also increasing by 17 per cent to Sh37.5 billion.
• Credit Loss Provisions: The group allocated Sh8.0 billion for credit losses, marking a significant 46.3 per cent increase, indicating a proactive approach to risk management.
• Customer Deposits: Closed the fiscal year at Sh532 billion, a 6 per cent increase, underscoring growing customer confidence.
• Total Assets: Expanded by 8 per cent, reaching Sh716 billion, reflecting the group’s overall growth and scale.

Digital Lending Fuels Growth

Digital lending has emerged as a pivotal engine of growth for NCBA Group PLC. The bank reported disbursing an astounding KSh1.4 trillion in digital loans, a remarkable 32 per cent increase compared to the previous year. This surge highlights the increasing adoption and reliance on digital financial services by customers.

Concluding a Strategic Era

Group Managing Director John Gachora remarked that the 2025 financial outcomes signify the successful conclusion of the bank’s 2020–2025 strategic plan. “The 2025 outcomes are a great milestone to close out our 2020–2025 strategy. Over the last five years, a disciplined execution of strategy and enhanced diversification of our business model have delivered a more robust institution with momentum to carry us forward,” he stated.

Over the past five years, NCBA Group PLC has demonstrably expanded its operational footprint and customer reach:

• Branch Network Expansion: The bank increased its branch network from 89 to 123 outlets, enhancing its physical presence and accessibility.
• Customer Base Growth: The group reported a consistent expansion of its customer base, a testament to its customer-centric approach.
• Corporate Banking Strength: The corporate banking segment was significantly bolstered, with deposits within this unit reaching Sh215 billion.
• Regional Transaction Platform Adoption: More than 20,000 customers embraced the group’s regional transaction platform.
• Asset Finance Market Share: The asset finance business successfully maintained a dominant market share of over 30 per cent.

Diversified Profitability Streams

Digital operations played a substantial role in the group’s overall profitability, contributing 32 per cent to the total. The profit before tax generated from the digital segment alone reached an impressive Sh9.0 billion.

The workforce has also seen considerable growth, with staff numbers increasing from 2,512 in 2020 to over 4,000 by 2025, reflecting the expanding operations and strategic initiatives.

The group’s profitability is derived from a diversified portfolio of operations:

• Kenya Banking Subsidiary: This remains the primary contributor to earnings, accounting for a significant 82 per cent of the profit before tax.
• Regional Subsidiaries: These operations generated Sh3.6 billion in profit before tax, contributing 13 per cent to the group’s overall bottom line.
• Non-Banking Subsidiaries: This segment, encompassing investment banking, bancassurance, leasing, and insurance, collectively recorded a profit before tax of Sh1.9 billion, representing 5 per cent of total earnings.

Commitment to Sustainability and Social Impact

NCBA Group PLC also highlighted significant progress in its sustainability initiatives. The group reported Sh9.5 billion in green and sustainable financing and has actively engaged in environmental stewardship by planting over 1.3 million trees. Furthermore, the bank has demonstrated a strong commitment to social development by supporting over 70,000 women, youth, and individuals in the creative economy through vital skills and mentorship programs.

Charting the Future: The Ubuntu Strategy

Looking ahead, NCBA Group PLC has unveiled its new five-year strategic blueprint, the 2026–2030 Ubuntu strategy. This forward-looking plan is designed to:

• Strengthen Core Operations: Focus on enhancing the efficiency and effectiveness of existing business lines.
• Expand High-Growth Segments: Capitalize on and grow areas of the business with significant potential.
• Enter New Markets: Explore and establish presence in promising new geographical or sector markets.
• Transform Operating Model: Innovate and modernize the way the group conducts its business for greater agility and impact.

The group also noted that the proposed acquisition of a 66 per cent stake by Nedbank Group has the potential to significantly accelerate its expansion ambitions. This strategic transaction is expected to bolster access to funding, diversify risk exposure beyond East Africa, and broaden the range of product offerings available to customers.

Gachora expressed confidence in the bank’s future trajectory, stating, “We are proud of the progress we have made, excited about the Ubuntu strategy, and clear that the Nedbank transaction will only accelerate our ambitions.” This sentiment underscores the group’s optimistic outlook and its commitment to sustained growth and innovation.