NCBA Group has posted a net profit of KSh 5.5 billion for the first quarter of 2025, a three percent year-on-year increase, driven by higher operating income and a significant improvement in its net interest margin.
The Group’s profit before tax rose to KSh 6.8 billion, up from KSh 6.5 billion in Q1 2024. This was supported by an eight percent rise in operating income to KSh 17.3 billion, as well as effective cost controls, which helped bring down the cost-to-income ratio to 51.3 percent—the best level in recent years.
Despite this profitability, NCBA’s balance sheet contracted. Customer deposits fell 9.5 percent to KSh 496 billion, while total assets dropped 5.6 percent to KSh 656 billion.
The lender also recorded a 6.1 percent net interest margin, its highest in five years, and return on equity rose slightly to 18.7 percent.
Q1 2025 vs Q1 2024 Performance Highlights
| Metric | Q1 2025 | Q1 2024 | YoY Change |
|---|---|---|---|
| Net Profit | KSh 5.5Bn | KSh 5.3Bn | ▲ 3.0% |
| Profit Before Tax | KSh 6.8Bn | KSh 6.5Bn | ▲ 4.5% |
| Operating Income | KSh 17.3Bn | KSh 16.0Bn | ▲ 8.0% |
| Operating Expenses | KSh 8.9Bn | KSh 8.2Bn | ▲ 9.0% |
| Loan Loss Provisions | KSh 1.6Bn | KSh 1.3Bn | ▲ 20.3% |
| Customer Deposits | KSh 496Bn | KSh 548Bn | ▼ 9.5% |
| Total Assets | KSh 656Bn | KSh 695Bn | ▼ 5.6% |
| Net Interest Margin | 6.1% | 5.0% | ▲ 1.1 pts |
| Cost-to-Income Ratio | 51.3% | 57.3% | ▼ 6.0 pts |
| Return on Equity (ROE) | 18.7% | 18.4% | ▲ 0.3 pts |
NCBA’s Q1 Five-Year Trend (2021–2025)
Over five years, NCBA has more than doubled its Q1 net profit, improved operational efficiency, and maintained a strong capital base.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Profit (KSh Bn) | 2.84 | 3.41 | 5.07 | 5.30 | 5.50 |
| Profit Before Tax (Bn) | 3.87 | 4.67 | 6.39 | 6.54 | 6.80 |
| Operating Income (Bn) | 11.83 | 10.75 | 15.55 | 15.98 | 17.30 |
| Customer Deposits (Bn) | 434 | 470 | 500 | 548 | 496 |
| Total Assets (Bn) | 542 | 591 | 629 | 695 | 656 |
| Net Interest Margin (%) | 4.9 | 4.9 | 5.0 | 5.0 | 6.1 |
| Cost-to-Income Ratio (%) | 57.5 | 57.5 | 58.9 | 57.3 | 51.3 |
| Return on Equity (%) | 10.6 | 10.6 | 14.2 | 18.4 | 18.7 |
Despite the shrinking asset base, NCBA’s focus on improving core earnings, maintaining strong margins, and managing costs effectively has positioned the bank on a continued path of profitability and resilience.
