NCBA Group posted a profit after tax of Ksh12.4 billion for the first six months of 2026, marking a 12.2 per cent increase from the Ksh11 billion it earned during the same period last year.
The lender's strong performance came despite significantly increasing the amount of money it reserved to cover customers who may fail to repay loans, with provisions for credit losses rising from Ksh3.2 billion to Ksh5.2 billion.
The bank also rewarded shareholders by declaring an interim dividend of Ksh3.75 per share, up from Ksh2.50 paid during the same period last year.
According to the financial results released on Wednesday, operating income climbed 15.1 per cent to Ksh40.7 billion, while profit before tax rose 14.3 per cent to Ksh15.5 billion.
Customer deposits grew 11 per cent to Ksh551 billion, with the group's total assets increasing to Ksh739 billion.
Digital banking remained one of NCBA's biggest growth drivers, with customers borrowing Ksh819 billion through digital loans during the six-month period, representing a 26.9 per cent increase compared to last year.
NCBA Group Managing Director John Gachora attributed the performance to steady business growth despite a difficult economic environment.
"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 delivered a resilient total income growth of 15.1 per cent reflecting healthy business volumes, improved margins and continued customer activity."
Gachora acknowledged the increase in provisions for bad loans but said the move was deliberate.
"We have increased provisions to Ksh 5.2 billion reflecting the realities of the current operating environment which positions us well to absorb potential risks."
He added that the bank maintained non-performing loans at 10.5 per cent, below Kenya's banking industry average of 15.3 per cent.
The Kenyan banking business remained NCBA's largest profit contributor, posting Ksh13.7 billion in earnings, a 24.3 per cent increase from a year earlier.
Regional operations in Uganda, Tanzania and Rwanda collectively generated Ksh1.6 billion, while the group's non-banking businesses, including investment banking, insurance and leasing, posted Ksh1.1 billion in profit, up 40 per cent.
The bank also disclosed that it invested Ksh2.4 billion in technology to strengthen artificial intelligence capabilities, cybersecurity and digital banking systems.
Mobile banking now accounts for 94 per cent of all transactions, while NCBA said its wealth management business surpassed Ksh101 billion in assets under management.
Meanwhile, the lender revealed that its proposed acquisition involving Nedbank Group is progressing as planned after the tender offer closed in July with 121 per cent oversubscription, although completion remains subject to regulatory approvals.
Looking ahead, Gachora said the bank remains optimistic despite global economic uncertainty.
"We remain confident in the strength of our UBUNTU strategy enabled by a projected optimistic business outlook... and our ability to unlock new growth opportunities which will generate enduring value for customers, shareholders, and the communities we serve."