NCBA Group Plc reported a 7% rise in full-year 2025 profit after tax to KSh 23.4 billion, underscoring resilience as the lender moves closer to a partial takeover by Nedbank Group.
The bank’s profit increased from KSh 21.9 billion in 2024, driven largely by a sharp rise in interest income. Net interest income climbed 28% to KSh 44.1 billion, boosting total operating income by 17% to KSh 73.3 billion.
Non-interest income rose 3.8% to KSh 29.3 billion, reflecting stable performance in fees and commissions.
Total assets grew 7.5% to KSh 716 billion, supported by expansion in customer deposits and lending. Deposits increased 5.9% to KSh 531.9 billion, while net loans rose 5% to KSh 317.2 billion.
The growth highlights NCBA’s ability to expand its core banking operations despite a challenging economic environment.
Rising provisions signal economic pressure
Loan loss provisions surged 46.3% to KSh 8 billion, pointing to increased credit risk as borrowers face economic strain.
Profit before tax rose 10.9% to KSh 27.9 billion, indicating improved operational efficiency even as the bank set aside more funds to cushion against potential defaults.
NCBA leadership said the results reflect resilience and continued adaptation in a volatile economic climate.
The increase in provisions mirrors a broader trend in Kenya’s banking sector, where lenders are tightening risk controls amid rising defaults.
Dividend payout rises sharply
The bank announced a total dividend of KSh 7.10 per share for 2025, representing a 29% increase from KSh 5.50 paid in 2024.
This includes an interim dividend of KSh 2.50 per share paid on 2 October 2025 and a proposed final dividend of KSh 4.60 per share.
The final dividend is subject to shareholder approval at the Annual General Meeting scheduled for 26 May 2026.
Shareholders registered by 30 April 2026 will be eligible for the payout, with payment expected on or shortly after the AGM.
The higher dividend reflects confidence in the bank’s earnings strength and capital position.
Nedbank takeover moves forward
The results come as NCBA advances a partial takeover deal with Nedbank Group, which plans to acquire approximately 1,087,362,891 ordinary shares, representing about 66% of NCBA’s issued share capital.
The offer is structured on a partial pro rata basis, allowing shareholders to tender up to 66% of their holdings, with the option to tender additional shares proportionally.
Under the terms, shareholders will receive 80% of the consideration in Nedbank shares and 20% in cash. The cash component is set at KSh 2,100 per share.
Institutional shareholders unable to hold Nedbank shares will receive full cash compensation.
NCBA said Nedbank currently holds no shares outside the offer, but completion of the transaction could give the South African lender effective control, with its stake potentially exceeding 66% under certain conditions.
The bank added that the offer structure ensures fairness and transparency for all shareholders.
Banking sector posts strong growth
NCBA’s performance reflects broader growth across Kenya’s banking sector.
The country’s nine largest banks posted a combined profit of KSh 275.6 billion, marking a 16.7% increase compared to the previous year.
The sector’s expansion has been supported by higher interest rates and stronger revenue generation, although rising loan defaults remain a key concern.
As NCBA moves toward a new ownership structure, attention will shift to how the partnership with Nedbank shapes its strategy and regional expansion.
