NCBA Group PLC has reported its highest-ever earnings, posting a profit after tax of KSh 23.39 billion for the financial year ending 31 December 2025.
The figure represents a 7% rise from KSh 21.87 billion recorded the previous year, extending the bank’s streak of annual profit growth to six consecutive years since its formation following the 2019 merger of Commercial Bank of Africa and NIC Group. Since then, profits have grown at an average annual rate of roughly 20%, climbing from KSh 7.84 billion to the current level.
The lender is now on course to become a subsidiary of South Africa’s Nedbank Group, which has maintained a representative office in Kenya since 2010.
Net interest income jumped 27.7% to KSh 44.08 billion, driven by a sharp 41.6% drop in interest expenses to KSh 24.05 billion. This followed a deliberate restructuring of liabilities, with the bank trimming costly deposits. Group Managing Director John Gachora attributed the performance to targeted efforts to reduce funding costs and improve asset allocation, resulting in an expansion of the net interest margin from დაახლოებით 5.0% to 6.1%.
Total operating income rose by 16.96% to KSh 73.33 billion, while operating expenses increased at a faster pace of 21% to KSh 45.53 billion. This pushed the cost-to-income ratio up to 62.1%, compared to 60% in 2024, partly due to expansion to 122 branches across six countries.
Loan loss provisions surged 46.3% to KSh 8.02 billion, even as non-performing loans declined by 3.6% to KSh 35.83 billion. The increase reflects a more conservative provisioning approach, with NPL coverage reaching 68.9% by the third quarter, the highest since the merger.
Earnings per share rose to KSh 14.20 from KSh 13.27. The board has proposed a final dividend of KSh 4.60 per share, bringing the total payout for FY2025 to KSh 7.10, a 29.1% increase from the previous year and the highest since the merger. Shareholders on record as of 30 April 2026 will receive the dividend, with payments scheduled from 26 May 2026.
Strategic Appeal to Nedbank
NCBA’s strong performance is underpinned by its expansive digital lending platform, which disbursed KSh 1 trillion in loans in 2025, a 35% increase year-on-year. Key products include Fuliza, its M-Pesa overdraft facility with 33.4 million users, and M-Shwari, which serves 32 million customers. Both are anchored on a crucial partnership with Safaricom.
The bank also commands a 35% share of Kenya’s asset finance market, the largest in the country.
These strengths form the backbone of Nedbank’s acquisition strategy. In January 2026, the South African lender made a partial offer to acquire about 66% of NCBA for approximately R13.9 billion (around $855 million), valuing the bank at about KSh 102 per share, or 1.4 times book value—towards the upper end of recent regional banking deals.
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Nedbank CEO Jason Quinn structured the deal to secure control, avoiding the pitfalls of minority stakes, referencing the bank’s previous underwhelming investment in Ecobank Transnational. Significant shareholders, including the Kenyatta and Ndegwa families, have already committed to the offer, representing nearly 28% of the bank’s equity.
The transaction received a major boost in February 2026 when Kenya’s Capital Markets Authority exempted Nedbank from mandatory full takeover requirements. So far, shareholders holding 77.54% of issued shares have backed the deal.
Fitch Ratings has since placed NCBA on Rating Watch Positive, signalling a possible upgrade. Approval from the Central Bank of Kenya is anticipated in the third quarter of 2026, with completion expected later in the year. NCBA will continue operating under its current brand, management, and remain listed on the Nairobi Securities Exchange.
