L-R: David Abwoga, Group Director Finance, Louisa Wandabwa, Group Director Regional Business & Strategy, John Gachora, Group Managing Director & Group CEO and Raphael Agung, Group Director Global Markets & Chief Economist
The board proposed a dividend of KSh11.7 billion, up from KSh9.1 billion in the previous year
Kampala, Uganda | JULIUS BUSINGE | NCBA Group reported a 7% increase in net profit to KSh23.4 billion ($181 million) for the year ended December 2025, helped by stronger asset growth, improved margins and a sharp rise in digital lending.
Profit before tax climbed 10.9% to KSh27.9 billion, while operating income rose 17% to KSh73.3 billion, the lender said, reflecting gains from a more diversified business spanning banking and non-banking units. The board proposed a dividend of KSh11.7 billion, up from KSh9.1 billion a year earlier.
The Nairobi-based bank, which operates in Kenya, Uganda, Tanzania and Rwanda, said regional subsidiaries are playing an increasingly important role in earnings. Units outside Kenya contributed KSh3.6 billion in profit before tax, or 13% of the group total, as lending and deposits in those markets grew about 14%.
Key growth markets
Uganda remains a key growth market, particularly in retail banking, small business financing and property-linked lending, supported by rising urbanisation and digital adoption. The bank has also expanded its footprint in digital financial services, where it sees higher margins and lower operating costs.
Digital lending was a standout performer, with disbursements rising 33% to KSh1.4 trillion. NCBA attributed the growth to continued investment in artificial intelligence and data analytics, which have improved credit scoring and helped keep default rates low. Digital channels now account for 32% of group profitability, underlining their role as a core earnings driver.
The balance sheet expanded in line with lending growth. Total assets rose 8% to KSh716 billion, while customer deposits increased 6% to KSh532 billion. The lender said the rebound in loan growth reflected stronger credit demand across its markets, even as it maintained a cautious approach to risk.
Despite the shift to digital, NCBA said its physical network remains central to customer engagement. The group operates over a hundred branches across its markets, most of which are profitable, and plans to expand selectively alongside agency banking and mobile platforms.
Non-banking businesses also contributed to performance. Investment banking, leasing and insurance operations posted solid growth, while wealth management assets surpassed KSh100 billion, up from KSh25 billion at the time of the group’s formation. The bank said closer integration between its banking and investment units is enabling it to offer a broader range of financial products.
NCBA Group Chief Executive Officer, John Gachora , said the results marked the close of the group’s 2020–2025 strategy period. “Disciplined execution and diversification have created a more resilient institution with strong momentum,” he said.
NCBA has launched a new five-year plan, dubbed Ubuntu (2026–2030), which will focus on scaling high-growth segments including consumer banking, small businesses, wealth and insurance, while strengthening core operations and investing in technology.
The group is also evaluating opportunities linked to a potential transaction involving Nedbank Group, which it said could enhance capital, improve liquidity and support regional expansion.
Tightening competition
NCBA’s performance comes as competition among East Africa’s largest lenders intensifies. Equity Group Holdings reported a 55% jump in net profit to KSh75.5 billion, the highest on record for a Kenyan firm, while KCB Group posted an 11% increase to KSh68.4 billion, highlighting a widening gap between the region’s top-tier banks.
Equity’s growth has been driven by aggressive regional expansion and a rapid shift to digital banking, with more than 98% of transactions conducted outside branches. KCB, by contrast, has prioritised balance sheet strength and capital resilience, maintaining a lower cost base and steady returns despite slower profit growth.
Across the sector, regional diversification is becoming a key differentiator. Equity said operations outside Kenya now account for roughly half of its earnings, while KCB’s subsidiaries contributed about 30.7% of profit before tax. For NCBA, the 13% contribution from regional units signals room for further expansion, particularly in faster-growing markets such as Uganda and Tanzania.
The broader economic backdrop remains supportive but uneven. Growth in East Africa has been underpinned by strong performance in countries such as Uganda and Rwanda, though risks from currency volatility, global interest rates and geopolitical tensions persist.
Bright outlook
NCBA said it remains optimistic about the outlook, citing favourable demographics, rising demand for financial services and continued investment in sustainability initiatives, including green financing and community programmes.
“We are proud of the progress we have made and excited about the future,” Gachora said.
With digital lending scaling rapidly and regional operations gaining traction, NCBA is positioning itself for its next phase of growth—though it faces stiff competition from larger rivals with deeper regional footprints and faster earnings momentum.
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