NCBA Group Plc has posted a profit after tax of Ksh 5.5 billion in its Q1 2025 financial results which is a 3 per cent increase compared to Ksh 5.3 billion reported during a similar period in 2024.

The lender posted profit before tax of Ksh 6.8 billion, 4.5 per cent up year on year.

Operating income of Ksh 17.3 billion, 8 per cent up year on year while operating expenses of Ksh 8.9 billion, 9 per cent up year on year.

Digital Loans disbursed were Ksh 307 billion, 32 per cent up year on year while provision for credit losses was Ksh 1.6 billion, 20.3 per cent up year on year.

Customer deposits closed at Ksh 496 billion, 9.5 per cent down year on year. Total Assets closed at Ksh 656 billion, 5.6 per cent down year on year.

NCBA Group Managing Director John Gachora said: “Despite the headwinds of 2025, we are pleased to present these positive results in the first quarter of 2025. The profitability performance demonstrates underlying resilience in our core income streams, while strong recovery efforts improved our asset quality. The contraction in customer deposits and assets was driven by strategic initiatives focused on optimizing funding costs and enhancing asset allocation efficiency.”

“Consequently, the effective cost of funds management has improved our net interest margin to 6.1 per cent up from 5.0 per cent over the same period last year. To strengthen our financial resilience, we increased our impairment coverage to 63 per cent, while maintaining a healthy Non-performing loan (NPL) ratio of 11.9 per cent. Our focus on improved credit led to a lower cost of risk at 1 per cent. The Group remains effectively capitalized at 21.5 per cent with sufficient buffers providing the Group the firepower to take advantage of opportunities for growth.”