Kenyan banker John Gachora leads NCBA Group to $95.8 million half-year profit

NCBA Group Plc, the Nairobi-based financial services company led by Kenyan banker John Gachora, reported a 12.2 percent increase in first-half profit after tax to KSh12.4 billion ($95.8 million), as stronger income from lending, payments, and regional operations offset a challenging economic environment across East Africa.

Profit before tax for the six months ended June 30, 2026, climbed 14.3 percent to KSh15.5 billion ($120 million) from KSh13.55 billion ($104.7 million) a year earlier. Total operating income rose 15.1 percent to KSh40.7 billion ($314.5 million), supported by higher transaction volumes, steady lending activity, and improved margins across its regional businesses. 

Kenya drives profit, regional lending grows

The group’s Kenyan banking business remained its biggest earnings contributor, posting KSh13.7 billion ($105.9 million) in profit after tax, up 24.3 percent from a year earlier. Its subsidiaries in Uganda, Tanzania, and Rwanda generated a combined KSh1.6 billion ($12.4 million) in profit, helped by a 25 percent increase in regional lending. 

Outside traditional banking, the group’s investment banking, leasing, bancassurance and insurance businesses contributed KSh1.1 billion ($8.5 million), a 40 percent increase from the previous year. Assets under management in the wealth business also surpassed KSh101 billion ($781 million), serving more than 60,000 active clients.

Growth came despite higher credit costs during the period. Operating expenses increased 5.1 percent to KSh19.5 billion ($150.7 million), although the bank improved its cost-to-income ratio by 130 basis points through tighter cost management.

Loan-loss provisions, however, rose 60.3 percent to KSh5.2 billion ($40.2 million), compared with KSh3.2 billion ($24.7 million) a year earlier. Gross non-performing loans stood at KSh40.3 billion ($311.5 million), giving the lender a non-performing loan ratio of 10.5 percent, comfortably below the Kenyan banking industry’s average of 15.3 percent.

Balance sheet strength supports growth

The lender also continued to strengthen its balance sheet. Total assets increased 11.5 percent to KSh739 billion ($5.71 billion), while customer deposits grew 11 percent to KSh551 billion ($4.25 billion). Net loans and advances to customers rose to KSh345.9 billion ($2.67 billion), from KSh288.1 billion ($2.22 billion) at the end of June 2025.

Digital banking remained one of NCBA’s strongest businesses during the first half. Digital loan disbursements climbed 26.9 percent to KSh819 billion ($6.32 billion), while mobile channels accounted for 94 percent of all transactions processed by the bank. Lending to small and medium-sized businesses also expanded, with the SME portfolio rising 12 percent to KSh44.7 billion ($345.5 million).

“The first half of 2026 was marked by a dynamic operating environment with pressure on inflation and a cautious policy approach by regional Central Banks,” Gachora said. “Our focused execution of the UBUNTU strategy has ensured that we delivered resilient total income growth.”

Nedbank takeover nears completion

NCBA serves retail, corporate and institutional customers through a network of more than 120 branches, supported by one of East Africa’s largest digital lending platforms. Reflecting the stronger performance, the board increased the interim dividend by 50 percent to KSh3.75 ($0.03) per share, up from KSh2.50 ($0.02) in the same period last year.

The results come as South Africa’s Nedbank Group moves closer to completing its acquisition of a controlling 66 percent stake in the lender. The tender offer closed on July 10, 2026, with shareholders tendering 1.32 billion shares, representing an oversubscription rate of 121 percent.

NCBA said it has received key regulatory approvals from central banks and competition authorities in South Africa, Kenya, Tanzania, Rwanda, COMESA, the East African Community and ECOWAS. The transaction is expected to close before the end of the third quarter of 2026, after which NCBA will remain listed on the Nairobi Securities Exchange.