NCBA Group Plc reported a 12.2% increase in net profit to KES 12.4 billion for the six months ended June 2026, up from KES 11 billion recorded in the same period last year, supported by stronger earnings from its Kenyan banking business and growth across Uganda, Tanzania and Rwanda.
The group’s Kenyan banking subsidiary remained the main contributor to profitability, recording a 24.3% year-on-year increase in profit to KES 13.7 billion. NCBA attributed the performance to disciplined management of funding costs and growth in core banking activities.
Regional subsidiaries in Uganda, Tanzania and Rwanda generated a combined profit of KES 1.6 billion during the period, supported by a 25% increase in lending, an 11% rise in income and improved loan recoveries.
NCBA Group Managing Director John Gachora said the first half of 2026 was characterised by inflation pressures and a cautious policy approach from regional central banks.
“Our focused execution of the UBUNTU strategy has ensured that we delivered a resilient total income growth of 15.1 per cent reflecting healthy business volumes, improved margins and continued customer activity,” said Gachora.
The group’s operating income increased by 15.1% to KES 40.7 billion during the period.
NCBA Balance Sheet Expands as Digital Lending Grows
NCBA Group continued to expand its lending and digital banking operations in H1 2026. The bank disbursed KES 819 billion in digital loans during the period, representing a 26.9% increase compared with the previous year.
Customer deposits grew by 11% to KES 551 billion, while total assets expanded by 11.5% to KES 739 billion. The group reported a non-performing loan (NPL) ratio of 10.5%, below the Kenyan banking sector average of 15.3%.
Gachora said the bank maintained balance sheet growth through disciplined lending practices and stable customer deposits.
“Our balance sheet momentum remained strong, anchored on disciplined growth in quality lending demonstrated by well-managed non-performing loans of 10.5 per cent compared to the market`s 15.3 per cent (Kenya) and stable funding provided by customer deposit growth,” he said.
NCBA increased credit-loss provisions by 62.5% to KES 5.2 billion, reflecting operating risks during the period.
“We have increased provisions to KES 5.2 billion reflecting the realities of the current operating environment which positions us well to absorb potential risks,” Gachora added.
The lender recorded a return on average equity of 19%, while its capital adequacy ratio stood at 21.7%.
NCBA Raises Interim Dividend
NCBA’s board increased the interim dividend payout by 50% to KES 3.75 per share, up from KES 2.50 per share in the previous period. The group said its capital position provided capacity to support future growth and investment.
“We are also encouraged by the strength of our return on average equity at 19.0 per cent while maintaining a strong capital adequacy position of 21.7 per cent providing a solid foundation to support future growth and investment opportunities,” said Gachora.
Non-Banking Businesses Increase Profit Contribution
NCBA’s non-banking subsidiaries continued to record growth during the period, with NCBA Investment Bank, leasing, bancassurance and NCBA Insurance generating a combined profit of KES 1.1 billion.
The performance represented a 40% year-on-year increase and contributed to the group’s overall earnings growth. NCBA Investment Bank recorded a 36.2% increase in total income to KES 830 million during the first half of 2026.
The investment banking unit recorded growth across its revenue streams, with brokerage commissions rising by 158% to KES 175 million, fund management fees increasing by 23.7% to KES 552.5 million, and advisory and consultancy income growing by 6.8% to KES 58.7 million.
Operating expenses increased by 1.2%, allowing operating profit to rise by 56.1% to KES 606.8 million. Profit after tax for NCBA Investment Bank reached KES 424.7 million, representing a 52.7% increase from the previous year.
The unit’s total assets stood at KES 1.81 billion as of June 30, 2026, compared with KES 1.69 billion at the end of 2025.
During the period, NCBA Investment Bank wound up its KES and USD Basket Funds and replaced them with newly established Money Market Funds. The NCBA Kenya Shilling Money Market Fund closed the period with assets of KES 2.17 billion.
NCBA Invests KES 2.4 Billion in Technology Infrastructure
NCBA invested KES 2.4 billion in technology infrastructure during the first half of 2026 as it expanded artificial intelligence adoption, strengthened cyber resilience and upgraded core operations.
The investment contributed to system uptime of 99.68% and increased its Digital Net Promoter Score to 69%. The group also expanded NCBA ConnectPlus, its business banking platform, across the region to provide a standardised digital banking experience for businesses.
NCBA increased its wealth management business, growing assets under management to KES 101 billion and surpassing 60,000 active wealth clients. Mobile banking accounted for 94% of transaction volumes during the period as automated customer journeys supported digital adoption.
The group’s insurance businesses also recorded growth, with NCBA Insurance and Bancassurance Gross Written Premiums reaching KES 2.1 billion and KES 2.3 billion respectively.
The SME loan book grew by 12% year-on-year to KES 44.7 billion, up from KES 39.9 billion, as NCBA expanded lending to small and medium-sized businesses.
NCBA Nedbank Transaction Progresses
NCBA said the proposed transaction with Nedbank is progressing as planned after the tender offer closed on July 10, 2026. The offer attracted shareholder support, recording a 121% oversubscription.
Completion of the transaction remains subject to fulfilment of remaining conditions and regulatory approvals.
NCBA Outlook for 2026
Looking ahead, Gachora said the global economic environment remained uncertain, with growth projections pointing to a softer expansion rate of 3.1% in 2026.
He noted that the investor environment remained active, with major regional expansion transactions expected to close in the second half of the year.
“We remain confident in the strength of our UBUNTU strategy enabled by a projected optimistic business outlook (Kenya private sector credit growth at 9.3 per cent) and our ability to unlock new growth opportunities which will generate enduring value for customers, shareholders, and the communities we serve,” said Gachora.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.