BUSINESS NEWS — NCBA Group PLC has reported a 7% increase in net profit to KES 23.4 billion (about Shs660 billion) for the year ended 2025, driven by stronger asset growth, improved margins, and a sharp rise in digital lending.
The lender’s latest financial results show that profit before tax grew by 10.9% to KES 27.9 billion, while operating income rose by 17% to KES 73.3 billion. The Group said this performance reflects a more diversified business model that is now delivering results across both its banking and non-banking segments.
NCBA also announced a higher dividend payout of KES 11.7 billion, up from KES 9.1 billion in 2024, signalling improved returns to shareholders as the Group enters a new growth phase.
Group Managing Director John Gachora said the results marked a strong close to the bank’s 2020–2025 strategy, which focused on growth, diversification, and digital transformation.
“The 2025 outcomes are a significant milestone as we conclude our 2020–2025 strategy. Over the last five years, disciplined execution and enhanced diversification of our business model have delivered a more robust institution with the momentum to carry us forward,” he said.
Regional markets gain ground
NCBA said its regional subsidiaries, including Uganda, contributed significantly to the Group’s performance, generating KES 3.6 billion in profit before tax and accounting for 13% of total earnings.
The Group noted that its regional business has continued to recover strongly, with lending and deposits growing by about 14% year-on-year. This performance demonstrates that its business model across the region is effective and that opportunities remain strong in markets such as Uganda, Tanzania, and Rwanda.
Uganda remains one of NCBA’s key growth markets, particularly in retail banking, SME financing, digital financial services, and property-related lending. The lender said increasing demand for credit, rising urbanisation, and growing digital adoption continue to create opportunities in the country.
Digital lending crosses major milestone
One of the strongest drivers of NCBA’s performance was its digital lending business, which disbursed KES 1.4 trillion during the year, representing a 33% increase.
The Group said investments in artificial intelligence, machine learning, and data analytics have strengthened credit scoring and kept default rates low, even as lending volumes grow.
According to NCBA, digital financial services now contribute 32% of total Group profitability, making them a major pillar of the business.
The bank added that its digital strategy is no longer focused solely on scale and speed, but also on improved risk management, customer targeting, and long-term sustainability.
Assets, deposits, and branches expand
NCBA’s total assets grew by 8% to KES 716 billion, while customer deposits rose by 6% to KES 532 billion. The loan book also expanded after a period of slower growth, reflecting stronger demand for credit across its markets.
Despite the shift to digital channels, the Group said its branch network remains a key part of the customer experience. NCBA now operates 123 branches across five markets, most of which are already profitable.
Customer surveys, the bank said, continue to show demand for more physical touchpoints, especially for relationship building and service delivery. As a result, the lender plans to continue expanding its physical presence, supported by agency banking and digital channels.
Non-banking units add strength
NCBA’s non-banking businesses, including investment banking, leasing, and insurance, also delivered strong results. Wealth management was a standout performer, with assets under management rising from KES 25 billion at the time of the merger to more than KES 100 billion today.
The Group said this growth has been supported by synergies between its core banking and investment banking businesses, enabling customers to access a broader range of products within the NCBA ecosystem.
It added that its funds continue to offer competitive returns for customers seeking a balance between risk and performance.
New five-year strategy launched
Looking ahead, NCBA unveiled a new five-year strategy dubbed Ubuntu (2026–2030), themed “Banking on Belief – Empowering Ambitions.”
The strategy will focus on four key priorities: strengthening core banking operations, scaling high-growth segments including wealth, consumer, SME, and insurance, unlocking new growth opportunities, and building a future-ready operating model.
The Group said the strategy is designed to deepen its competitiveness and expand its presence across regional markets, including Uganda.
NCBA is also exploring opportunities arising from a proposed acquisition by South Africa’s Nedbank, which it says could strengthen capital, improve liquidity, and support broader regional expansion.
Outlook
The bank said it remains optimistic about growth prospects in Uganda and across East Africa, citing strong economic fundamentals, a youthful population, and rising demand for financial services.
NCBA also reaffirmed its commitment to sustainability, pointing to continued investments in green financing, youth empowerment, community programmes, and environmental initiatives.
“We are proud of the progress we have made and excited about the future. We remain committed to delivering value for our customers, shareholders, and the communities we serve,” Gachora said.
