NCBA Group Managing Director John Gachora /HANDOUT NCBA Group shareholders are set for a higher interim dividend after the Nairobi Securities Exchange-listed bank reported a net profit of Sh12.4 billion for the six months ended June 2026.
This is a 12.2 per cent rise in half-year net profit, from Sh11 billion that was reported in the same period last year.
The lender attributed the growth to digital banking and customer deposits despite a sharp increase in provisions for bad loans.
The improved earnings enabled the board to declare an interim dividend of Sh3.75 per share, up from Sh2.50 paid during the corresponding period last year, handing shareholders a 50 per cent increase in their mid-year payout.
“Our balance sheet momentum remained strong, we managed our non-performing loans well at 10.5 per cent compared to the market’s 15.3 per cent (Kenya) and stable funding provided by customer deposit growth,” said NCBA Group Managing Director John Gachora.
“We have increased provisions to Sh5.2 billion reflecting the realities of the current operating environment which positions us well to absorb potential risks.”
The higher distribution comes as listed banks continue to reward investors with improved earnings after navigating a challenging operating environment marked by cautious lending, easing inflation and lower interest rates across the region.
NCBA's total operating income climbed 15.1 per cent to Sh40.7 billion, supported by increased business volumes, improved lending margins and continued growth in customer activity.
Customer deposits rose 11 per cent to Sh551 billion, while total assets expanded 11.5 per cent to Sh739 billion, reflecting continued balance sheet growth.
However, the bank also significantly increased the amount set aside to cushion against potential loan defaults. Credit loss provisions jumped to Sh5.2 billion, compared with Sh3.2 billion a year earlier, highlighting the continued pressure some borrowers face despite improving macroeconomic conditions.
Despite the higher provisioning, NCBA maintained relatively healthy asset quality. The group's non-performing loan ratio stood at 10.5 per cent, below the Kenyan banking industry's average of 15.3 per cent, reflecting tighter credit risk management.
The Kenyan banking subsidiary remained the group's largest earnings contributor, posting a 24.3 per cent jump in profitability to Sh13.7 billion.
Regional operations in Uganda, Tanzania and Rwanda collectively generated Sh1.6 billion in profit, supported by a 25 per cent increase in lending and steady income growth.
The lender's non-banking businesses, including investment banking, leasing, insurance and bancassurance, also recorded strong momentum, delivering combined profits of Sh1.1 billion, representing a 40 per cent increase from a year earlier.
Digital banking continued to be one of the bank's strongest growth engines.
NCBA disbursed Sh819 billion in digital loans during the period, representing a 26.9 per cent increase from the previous year, while mobile banking accounted for 94 per cent of all customer transactions.
The bank also continued investing heavily in technology, spending Sh2.4 billion on infrastructure aimed at expanding artificial intelligence capabilities, strengthening cybersecurity and improving system resilience.
The investment helped maintain system availability of 99.68 per cent during the period.
Beyond retail banking, NCBA says it expanded its wealth management business, growing assets under management to Sh101 billion and increasing active wealth customers to more than 60,000.
Its strategy of deepening lending to small businesses also gathered pace, with the SME loan book growing 12 per cent to Sh44.7 billion.
In asset finance, the lender supported asset acquisitions through its CarDuka digital marketplace, which facilitated vehicle sales worth Sh1.94 billion during the period.
The bank also said its proposed acquisition involving South Africa's Nedbank is progressing, with the tender offer attracting subscriptions equivalent to 121 per cent of the targeted shares.
Completion of the deal remains subject to regulatory approvals and other outstanding conditions.
Looking ahead, NCBA said it expects global economic uncertainty to persist, although it remains optimistic that improving private sector credit demand and regional investment activity will support growth during the second half of the year.
The lender said it would continue pursuing expansion opportunities while leveraging digital banking, technology investments and diversified revenue streams to sustain earnings growth and deliver long-term value to shareholders.
