NCBA Group Plc has posted a 12.2 per cent increase in profit after tax to Sh12.4 billion for the six months ended June 2026.
The growth was driven by strong lending expansion, rising digital transactions and higher customer deposits despite a challenging macroeconomic environment.
The lender’s half-year financial results released on Wednesday show operating income rose 15.1 per cent year-on-year to Sh40.7 billion, while profit before tax grew 14.3 per cent to Sh15.5 billion.
Customer deposits increased by 11 per cent to Sh551 billion, with total assets rising 11.5 per cent to Sh739 billion.
The board declared an interim dividend of Sh3.75 per share, up from Sh2.50 a year earlier, reflecting stronger profitability and confidence in the group’s financial position.
NCBA Group Managing Director John Gachora attributed the performance to disciplined execution of the bank’s UBUNTU strategy amid inflationary pressures and cautious monetary policy across the region.
“The first half of 2026 was marked by a dynamic operating environment with pressure on inflation and a cautious policy approach by the regional central banks. Our focused execution of the UBUNTU strategy has ensured that we achieved a resilient total income growth of 15.1 per cent, reflecting healthy business volumes, improved margins and continued customer activity,” he said.
Digital loans disbursed increased by 26.9 per cent to Sh819 billion during the period, while mobile banking accounted for 94 per cent of all transaction volumes as customers increasingly embraced digital channels.
NCBA said it invested Sh2.4 billion in technology infrastructure during the period to accelerate artificial intelligence adoption, strengthen cybersecurity and improve operational resilience.
The investment helped achieve system uptime of 99.68 per cent while supporting the regional rollout of its ConnectPlus business banking platform.
The lender also strengthened its wealth management business, growing assets under management to Sh101 billion while surpassing 60,000 active wealth clients. Its SME loan book expanded by 12 per cent to Sh44.7 billion as the bank deepened financing for small businesses.
Kenya remained the group’s strongest market, with the local banking subsidiary recording a 24.3 per cent increase in profitability to Sh13.7 billion.
Regional subsidiaries in Uganda, Tanzania and Rwanda collectively generated Sh1.6 billion in profit, supported by strong lending growth, while non-banking businesses, including investment banking, leasing, bancassurance and insurance, posted a combined 40 per cent increase in profitability to Sh1.1 billion.
NCBA Group increased its provisions for credit losses to Sh5.2 billion from Sh3.2 billion a year earlier, as it factored in potential economic risks.
Despite the higher provisioning, the bank maintained a non-performing loan ratio of 10.5 per cent, below the Kenyan banking sector average of 15.3 per cent, while sustaining a capital adequacy ratio of 21.7 per cent.
Looking ahead, Gachora said the group expects business opportunities to improve in the second half of the year despite a softer global economic outlook.
He added that the proposed transaction involving Nedbank remains on course after the tender offer closed with 121 per cent oversubscription, pending regulatory approvals.
– By Daniel Kamau
