NCBA Posts 9pc Rise in Q1 Profit on Digital Lending Growth

NCBA Group has posted a nine percent increase in first-quarter net profit, sustained by strong growth in digital lending, rising customer deposits, and improved revenue diversification across its regional operations.

The tier-one lender, with operations in Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast, reported a profit after tax of Sh6 billion for the three months ended March 31, up from Sh5.5 billion recorded during a similar period last year.

Operating income rose 15 percent to Sh20 billion, while total assets grew 13 percent to Sh741 billion during the review period.

“The Group delivered strong topline momentum, with operating income increasing by 15 percent year-on-year, reflecting sustained business growth, improved revenue diversification, and continued resilience across core operating segments,” said NCBA Group Managing Director, John Gachora.

NCBA Bank Kenya remained the Group’s biggest profit driver, posting a 20 percent rise in profit before tax to Sh6.5 billion.

Regional subsidiaries in Uganda, Tanzania, and Rwanda posted a combined profit before tax of Sh707 million, while non-banking subsidiaries that include NCBA Investment Bank, NCBA Insurance, Leasing, and Bancassurance, reported a combined profit before tax of Sh641 million.

The lender which boasts a regional branch network of 123 outlets said its growth strategy continues to focus on scaling high-growth segments through a blend of traditional banking and digital channels.

Digital banking remained central to the Group’s performance, with 98 percent of all customer transactions processed through digital channels during the quarter.

Data from the NCBA shows digital loan disbursements grew 27 percent year-on-year to Sh391 billion, reinforcing the its position as one of East Africa’s largest digital lenders.

In asset finance, where NCBA commands a 32 percent market share, the Group said its digital vehicle trading platform CarDuka has attracted nearly seven million users.

The bank also launched NCBA Boosta, a digitally accessible SME lending product offering loans of up to Sh35 million. The product is expected to accelerate the Group’s MSME lending portfolio, which stood at Sh8.3 billion in the first quarter of 2026.

Mr Gachora noted the lender’s capital position remained robust, with a total capital adequacy ratio of 21.8 percent, well above the regulatory minimum of 14.5 percent.

“The return on average equity remained stable at 18.4 percent, reflecting our continued long-term commitment to delivering value to shareholders,” he said.

South Africa’s Nedbank Group recently made an offer to acquire a 66 percent stake in the NCBA which is listed at the Nairobi’s Securities Exchange (NSE).

“The proposed transaction with Nedbank Group Limited continues to progress in line with plan, with key deal milestones currently on track and proceeding as anticipated,” noted Gachora.

ligadwah@businessdayafrica.org