Dar es Salaam. NCBA Group Plc posted a 12.2 percent increase in net profit for the first half of 2026, supported by higher lending, strong customer deposit growth and increased digital banking activity across its regional markets.
The lender reported a profit after tax of KSh12.4 billion for the six months ended June 2026, up from KSh11 billion recorded during the corresponding period last year, according to a statement shared yesterday.
Operating income rose by 15.1 percent to KSh40.7 billion, while profit before tax increased by 14.3 percent to KSh15.5 billion.
Customer deposits grew by 11 percent to KSh551 billion, with total assets rising by 11.5 percent to KSh739 billion.
The board also declared an interim dividend of KSh3.75 per share, compared with KSh2.50 paid during the same period last year.
Commenting on the results, NCBA Group managing director John Gachora said the bank delivered resilient growth despite a challenging operating environment characterised by 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 ensured we delivered resilient total income growth of 15.1 percent, reflecting healthy business volumes, improved margins and continued customer activity," he said.
Mr Gachora said the group's balance sheet remained strong, supported by disciplined lending and growth in customer deposits.
He noted that non-performing loans stood at 10.5 percent, below the Kenyan banking sector average of 15.3 percent, while provisions for credit losses increased to KSh5.2 billion from KSh3.2 billion a year earlier to strengthen the group's resilience against emerging risks.
"We have increased provisions to KSh5.2 billion, reflecting the realities of the current operating environment, which positions us well to absorb potential risks," he said.
The bank also maintained a capital adequacy ratio of 21.7 percent and achieved a return on average equity of 19 percent during the reporting period.
Digital banking remained a key driver of growth, with digital loans disbursed increasing by 26.9 percent year-on-year to KSh819 billion. Mobile banking accounted for 94 percent of all transactions processed during the period.
Regionally, NCBA's subsidiaries in Tanzania, Uganda and Rwanda recorded a combined profit of KSh1.6 billion, supported by a 25 percent increase in lending and continued growth in operating income.
The group's non-banking businesses, including investment banking, leasing, insurance and bancassurance, generated a combined profit of KSh1.1 billion, representing a 40 percent increase compared with the same period last year.
To support future growth, the bank invested KSh2.4 billion in technology infrastructure to strengthen cyber security, improve digital services and accelerate the adoption of artificial intelligence across its operations.
Mr Gachora said the proposed acquisition involving South Africa's Nedbank was progressing as planned after the tender offer closed on July 10, 2026, attracting shareholder support that exceeded the shares on offer.
The transaction remains subject to the fulfilment of outstanding conditions and regulatory approvals.
Looking ahead, he said the group remained optimistic despite expectations of slower global economic growth.
