NCBA Group Plc reported a first-half profit of KES 12.4 billion ($95 million), up 12.2% from a year earlier, as East Africa’s largest bank by customer numbers benefited from stronger digital lending, higher customer deposits and continued investment in artificial intelligence despite a cautious economic environment.
The Nairobi-based lender said profit before tax rose 14.3% to KES 15.5 billion, while operating income increased 15.1% to KES 40.7 billion during the six months ended June. The board declared an interim dividend of KES 3.75 per share, up from KES 2.50 paid in the corresponding period last year.
Digital banking remained one of the biggest drivers of growth. Digital loan disbursements climbed 26.9% year-on-year to KES 819 billion, while customer deposits rose 11% to KES 551 billion. Total assets increased 11.5% to KES 739 billion, reflecting continued expansion in the bank’s lending and deposit franchises.
The earnings come as lenders across East Africa navigate slowing economic growth, tighter monetary policy and persistent credit risks. NCBA increased provisions for credit losses to KES 5.2 billion from KES 3.2 billion a year earlier, a move the bank said reflects current operating conditions while positioning it to absorb potential risks.
Kenya remained the group’s largest earnings market, with the local banking subsidiary increasing profitability by 24.3% to KES 13.7 billion. Regional subsidiaries in Uganda, Tanzania and Rwanda generated a combined KES 1.6 billion in profit, while the group’s non-banking businesses—including investment banking, leasing, insurance and bancassurance—posted KES 1.1 billion in profit, up 40% from a year earlier.
NCBA invested KES 2.4 billion in technology infrastructure during the period to accelerate AI adoption, strengthen cyber resilience and improve the resilience of its banking platforms. The bank said mobile banking accounted for 94% of transaction volumes, while system availability reached 99.68%, underscoring customers’ growing reliance on digital channels.
Outside its core banking operations, the lender expanded assets under management in its wealth business to KES 101 billion and grew its SME loan book 12% to KES 44.7 billion. It also strengthened its position in electric vehicle and solar asset financing, while its CarDuka digital marketplace facilitated vehicle sales worth KES 1.94 billion during the first half.
The bank said its proposed transaction involving Nedbank remains on track after the tender offer closed in July with shareholder subscriptions exceeding the targeted shares. Completion of the deal is subject to remaining regulatory approvals and other closing conditions.
Looking ahead, Chief Executive Officer John Gachora said NCBA expects continued growth opportunities supported by projected expansion in Kenya’s private sector credit market and regional investment activity, despite an uncertain global economic outlook.