NCBA Group has posted a Ksh6 billion profit after tax for the first quarter of 2026, marking a 9 per cent increase from the Ksh5.5 billion recorded during a similar period last year, as the lender leaned heavily on digital banking growth and regional expansion to cushion itself against a tougher economic environment.

The lender’s latest financial results show operating income rose by 15 per cent to Ksh20 billion, while profit before tax climbed to Ksh7.4 billion.

However, beneath the strong earnings growth was a sharp rise in provisions for bad loans, with impairment charges surging by 56 per cent to Ksh2.5 billion, signaling growing caution within the banking sector over the state of the economy and borrowers’ ability to repay loans.

NCBA Group Managing Director John Gachora said the bank’s performance reflected the early gains of its new business strategy focused on strengthening its core operations, scaling fast-growing business segments and expanding into new markets.

FY 2026 Results

“As we present our financial results for the first quarter of 2026, I am pleased to report that the Group has delivered a strong start to our new strategy anchored on four pillars: Fortifying the Core, Scaling High-Growth Segments, Unlocking New Growth Frontiers and Powered by a Future Ready Ubuntu purpose-driven culture,” Gachora stated.

“The Group delivered strong topline momentum, with operating income increasing by 15 per cent year-on-year, reflecting sustained business growth, improved revenue diversification and continued resilience across core operating segments,” he added.

Gachora attributed the spike in impairment charges to what he described as “a prudent approach to credit risk assessment given the heightened volatile operating environment.”

The bank’s balance sheet also expanded significantly during the quarter, with customer deposits increasing by 10 per cent to Ksh544 billion while total assets rose to Ksh741 billion.

NCBA Bank Kenya remained the group’s biggest profit driver after posting a 20 per cent jump in profit before tax to Ksh6.5 billion.

Its regional subsidiaries in Uganda, Tanzania and Rwanda generated a combined Ksh707 million in profit before tax, while non-banking units including NCBA Investment Bank, Insurance, Leasing and Bancassurance posted a combined Ksh641 million.

The lender also reported rapid growth in wealth management, with assets under management at NCBA Investment Bank crossing Ksh101.5 billion while its customer base surpassed 60,000.

Digital banking continued to dominate the group’s operations, with NCBA revealing that 98 per cent of all transactions are now conducted through digital channels.

The bank disbursed Ksh391 billion in digital loans during the quarter, representing a 27 per cent increase compared to the same period last year.

NCBA’s vehicle marketplace platform CarDuka also continued its aggressive expansion, onboarding nearly seven million users as the lender tightened its grip on the asset financing market where it currently commands a 32 per cent market share.

The bank additionally launched NCBA BOOSTA, a digital SME lending product offering up to Ksh35 million in financing, in a move aimed at expanding lending to small businesses.

“Our capital position remained robust, with a total capital adequacy ratio of 21.8 per cent, well above the regulatory minimum of 14.5 per cent,” Gachora said.

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

Beyond banking, NCBA said it impacted more than 200,000 livelihoods through community programmes during the quarter, including scholarship initiatives, tree planting drives and youth empowerment projects.

The lender also deepened its push into green financing after helping arrange the Ksh3 billion Kenya Mortgage Refinance Company green bond and participating in the Ksh4.8 billion Two Rivers International Finance and Innovation Centre Green REIT transaction.

Looking ahead, Gachora said the bank’s proposed transaction with Nedbank Group was progressing as planned.

“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,” he said.

He added that NCBA had not yet experienced any significant disruption from the ongoing geopolitical tensions in the Middle East, though the bank was closely monitoring the situation for potential impacts on inflation, liquidity and broader market conditions.