NCBA Group PLC has reported a 7% increase in net profit to KES 23.4 billion (UGX 660 billion) for the year ended 2025, supported by sustained asset growth, improved net interest margins and accelerated expansion in digital lending, Pedson Mumbere reports.
The Group’s financial results show that profit before tax rose by 10.9 percent to KES 27.9 billion (UGX 786 billion), while operating income increased by 17 percent to KES 73.3 billion (UGX 2.06 trillion).
Management attributed the performance to a diversified business model that continues to deliver growth across both banking and non-banking segments.
The lender also declared a higher dividend pay-out amounting to KES 11.7 billion (UGX 330 billion), up from KES 9.1 billion (UGX 257 billion) in 2024, reflecting improved shareholder returns and strong capital generation.
Group Managing Director John Gachora said the results mark a remarkably successful close to the Group’s 2020–2025 strategy, which focused on growth, diversification and digital transformation.
“The 2025 outcomes represent a key milestone as we conclude our 2020–2025 strategic cycle,” Gachora said. “Disciplined execution and enhanced diversification have positioned the Group as a more resilient institution with strong momentum for future growth.”
Regional subsidiaries, including Uganda, continued to contribute meaningfully to earnings, generating KES 3.6 billion (UGX 101 billion) in profit before tax, representing 13 percent of total Group earnings.
The Group reported approximately 14 percent year-on-year growth in both loans and customer deposits across its regional markets, highlighting improving credit demand and economic recovery in countries such as Uganda, Tanzania and Rwanda.
Uganda remains a strategic growth market for NCBA, supported by opportunities in retail banking, SME financing, property lending and digital financial services, driven by urbanisation and increased financial inclusion.
Digital lending remained a key growth driver, with total disbursements rising by 33 percent to KES 1.4 trillion (UGX 39.4 trillion). The Group noted that investments in artificial intelligence, machine learning and data analytics have strengthened credit risk management while supporting scale.
Digital financial services now contribute 32 percent of total Group profitability, reinforcing their position as a core pillar of the business.
“Our digital strategy has evolved to focus on quality growth, risk management and long-term sustainability,” Gachora noted.
On the balance sheet, total assets grew by 8 percent to KES 716 billion (UGX 20.2 trillion), while customer deposits increased by 6 percent to KES 532 billion (UGX 15.0 trillion). The loan book also expanded, reflecting improved demand for credit across key markets.
Despite ongoing digital transformation, NCBA maintained that its physical distribution network remains integral to customer engagement, with 123 branches across five markets, the majority of which are profitable.
The Group’s non-banking businesses, including investment banking, leasing and insurance, also recorded strong growth, further supporting revenue diversification.
Wealth management assets under management increased significantly from KES 25 billion (UGX 705 billion) at the time of the merger to over KES 100 billion (UGX 2.82 trillion), driven by cross-selling opportunities and integrated financial solutions.
Looking ahead, NCBA has launched its new five-year strategy, Ubuntu (2026–2030), themed “Banking on Belief -Empowering Ambitions.”
The strategy is anchored on strengthening core operations, scaling high-growth segments, unlocking new opportunities and building a future-ready operating model.
The Group said the new strategic direction will enhance competitiveness and accelerate regional expansion, particularly in Uganda and the broader East African market.
NCBA is also exploring opportunities linked to a proposed acquisition by Nedbank, which is expected to strengthen capital and support long-term growth.
“We remain confident in our growth prospects and committed to delivering sustainable value to our customers, shareholders and stakeholders,” Gachora said.
