By Kelvin Jakachira
NAIROBI, KENYA: NCBA Group PLC has reported a 12.2 per cent increase in profit after tax to about US$95.8 million for the first half of 2026, as stronger operating income, digital lending and growth across its regional businesses helped offset rising credit-loss provisions.
The Nairobi-listed banking group said profit after tax increased from KES11.0 billion (US$85.1 million) in the first half of 2025 to KES12.4 billion (US$95.8 million) in the six months to June 2026.
Operating income rose 15.1 per cent year-on-year to KES40.7 billion (US$314.5 million), while profit before tax increased 14.3 per cent to KES15.5 billion (US$119.8 million).
Operating expenses increased at a slower pace, rising 5.1 per cent to KES19.5 billion (US$150.7 million).
However, the lender increased provisions for credit losses to KES5.2 billion (US$40.2 million), up from KES3.2 billion (US$24.7 million) a year earlier, reflecting higher risk provisioning amid a challenging operating environment.
NCBA Group managing director John Gachora said the bank’s performance reflected the execution of its UBUNTU strategy despite economic pressures across the region.
“Our focused execution of the UBUNTU strategy has ensured that we delivered a resilient total income growth of 15.1 per cent reflecting healthy business volumes, improved margins and continued customer activity,” Gachora said.
Digital lending surges
Digital lending remained a major growth engine for the group, with loans disbursed through digital channels rising 26.9 per cent year-on-year to KES819 billion (US$6.33 billion).
David Abwoga, Group Director Finance(left) and John Gachora, Group Managing Director & Group CEO
Customer deposits increased 11 per cent to KES551 billion (US$4.26 billion), while total assets expanded 11.5 per cent to KES739 billion (US$5.71 billion).
The bank also declared an interim dividend of KES3.75 (about US$0.029) per share, up from KES2.50 (about US$0.019) in the comparable period.
Gachora said NCBA’s balance sheet remained resilient, supported by growth in lending and deposits.
The group’s non-performing loan ratio stood at 10.5 per cent, compared with a market ratio of 15.3 per cent in Kenya, according to NCBA.
“We have increased provisions to KES5.2 billion reflecting the realities of the current operating environment which positions us well to absorb potential risks,” Gachora said.
NCBA reported a return on average equity of 19 per cent, while its capital adequacy ratio stood at 21.7 per cent.
Kenya remains key profit driver
NCBA’s Kenyan banking subsidiary remained the group’s biggest contributor to earnings, with profitability increasing 24.3 per cent year-on-year to KES13.7 billion (US$105.9 million).
The group said the improvement was driven mainly by disciplined management of the cost of funds.
Its regional subsidiaries in Uganda, Tanzania and Rwanda collectively generated KES1.6 billion (US$12.4 million) in profit, supported by lending growth of 25 per cent and an 11 per cent increase in income.
NCBA’s non-banking businesses — including investment banking, leasing, bancassurance and insurance — generated a combined KES1.1 billion (US$8.5 million) in profitability, representing 40 per cent year-on-year growth.
The performance underscores the group’s strategy of diversifying beyond traditional banking as competition intensifies across East Africa’s financial-services industry.
Heavy investment in technology
NCBA invested KES2.4 billion (US$18.6 million) in technology infrastructure during the period as it accelerated artificial intelligence adoption, strengthened cybersecurity and upgraded its core banking operations.
The investment helped the group achieve system uptime of 99.68 per cent, while its Digital Net Promoter Score increased to 69 per cent.
NCBA ConnectPlus, its business banking platform, was also expanded across the region.
Digital channels continued to dominate customer activity, with mobile banking accounting for 94 per cent of transaction volumes.
The group said its wealth-management business expanded to KES101 billion (US$781.3 million) in assets under management, with more than 60,000 active wealth clients.
Its SME loan book grew 12 per cent year-on-year to KES44.7 billion (US$345.8 million), up from KES39.9 billion (US$308.6 million).
Asset finance and electric vehicles
NCBA said strategic partnerships in asset finance were helping it capture opportunities in electric vehicles and solar leasing.
The bank said it had achieved a 30 per cent share of Kenya’s asset-finance market, while its digital vehicle marketplace, CarDuka, sold vehicles worth KES1.94 billion (US$15.0 million).
The KOMIUT digital transport platform processed more than KES117 million (US$ 0.9 Million) in collections.
In retail banking, NCBA said its 123 branches across the region, combined with digital onboarding and targeted campaigns, helped it acquire more than 10,000 new core banking customers every month.
The group’s retail loan book grew by 54 per cent.
Nedbank deal progresses
NCBA also provided an update on its proposed transaction involving Nedbank, saying the process was progressing according to plan.
The tender offer closed on July 10, 2026, attracting strong shareholder support and a reported 121 per cent oversubscription.
Completion of the transaction remains subject to outstanding conditions and regulatory approvals.
The deal comes as NCBA seeks to strengthen its position as a major regional financial-services player and expand its footprint and capabilities across African markets.
Green finance and sustainability
NCBA said it continued to expand its sustainability agenda through green financing, including the oversubscribed KES3 billion (US$23.2 million) Kenya Mortgage Refinance Company bond and financing for electric vehicles.
The group said more than 340,000 trees had been nurtured and planted, while community programmes had reached more than 400,000 livelihoods.
It also invested more than 100,000 learning hours in its workforce of over 4,000 employees and reported a staff retention rate of 91 per cent.
Outlook
Gachora said the group remained cautious but optimistic about the business environment, noting that global economic uncertainty had resulted in a softer projected growth rate of 3.1 per cent for 2026.
Despite the uncertainty, he said the investment environment remained active, with major regional expansion transactions expected to close during the second half of the year.
“We remain confident in the strength of our UBUNTU strategy enabled by a projected optimistic business outlook, Kenya private sector credit growth at 9.3 per cent, and our ability to unlock new growth opportunities which will generate enduring value for customers, shareholders, and the communities we serve,” Gachora said.
The results position NCBA for continued expansion in digital banking, regional financial services, wealth management, SME financing and emerging sectors such as electric mobility and green finance.
