NAIROBI, Kenya — NCBA bank has reported a profit after tax of Sh5.5 billion for the first quarter of 2025, reflecting a 3 percent year-on-year growth from the Sh5.3 billion posted during the same period in 2024.
The lender says its financial resilience was evident across key performance indicators, including a profit before tax of Sh6.8 billion, a 4.5 per cent increase, and operating income of Sh17.3 billion, up 8 percent from last year.
Its Managing Director, John Gachora, asserted that the results underscore the bank’s resilience and strategic focus.
“Despite the headwinds of 2025, we are pleased to present these positive results in the
first quarter of 2025,” he said.
“The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality.”
Gachora added that the Group’s effective cost of funds management resulted in an improved net interest margin of 6.1 percent, up from 5 percent the previous year.
The Group increased its impairment coverage to 63 percent while maintaining a healthy non-performing loan ratio of 11.9 percent.
Additionally, the cost of risk was reduced to 1 percent, and the Group remained well-capitalized at 21.5 percent.
The bank says this will provide a strong buffer for future growth opportunities.
On the flip side, operating expenses grew by 9 percent to Sh8.9 billion, while provisions for credit losses surged by 20.3 percent to Sh1.6 billion.
Customer deposits likewise contracted at 9.5 percent to Sh496 billion while its total assets declined to Sh656 billion down 5.6 percent.
