NCBA Group Plc reported a 7% rise in full-year 2025 profit after tax to KSh 23.4 billion, highlighting resilience as the lender moves closer to a partial takeover by Nedbank Group.
Profit increased from KSh 21.9 billion in 2024, supported by strong core income growth. Net interest income rose 28% to KSh 44.1 billion, lifting total operating income by 17% to KSh 73.3 billion.
Non-interest income grew 3.8% to KSh 29.3 billion, reflecting stable performance in fees and commissions.
Total assets expanded 7.5% to KSh 716 billion. Customer deposits rose 5.9% to KSh 531.9 billion, while net loans increased 5% to KSh 317.2 billion, signaling cautious lending amid economic uncertainty.
Rising provisions signal pressure
Loan loss provisions jumped 46.3% to KSh 8 billion, pointing to rising credit risks as borrowers face financial strain.
Despite this, profit before tax climbed 10.9% to KSh 27.9 billion, showing improved efficiency.
The increase in provisions reflects a broader trend across Kenya’s banking sector, where lenders are tightening risk management due to growing defaults.
NCBA declared a total dividend of KSh 7.10 per share for 2025, a 29% increase from KSh 5.50 in 2024.
This includes an interim dividend of KSh 2.50 paid on 2 October 2025 and a proposed final dividend of KSh 4.60, subject to approval at the Annual General Meeting on 26 May 2026.
Shareholders registered by 30 April 2026 will qualify for the payout.
Nedbank takeover advances
The results come as NCBA progresses a partial takeover deal with Nedbank Group, which plans to acquire about 66% of the bank’s issued share capital.
The offer will be implemented on a pro rata basis, allowing shareholders to tender up to 66% of their shares.
The consideration includes 80% in Nedbank shares and 20% in cash at KSh 2,100 per share. Institutional investors unable to hold shares will receive full cash compensation.
Completion of the deal could give Nedbank effective control of NCBA.
Kenya’s nine largest banks recorded combined profits of KSh 275.6 billion, up 16.7%, reflecting sector resilience despite rising credit risks.
