These results indicate an increasing demand for digital financial services, as more and more customers switch to mobile banking, digital lending platforms and modern technological solutions. John Gachora, Managing Director of NCBA Group, noted that the achieved indicators confirm the effectiveness of the bank's strategy based on innovation, disciplined implementation and constant focus on customer needs, despite the difficult economic environment. According to him, the strategy of the UBUNTU group ensured business growth by improving customer experience, expanding margins and stable scaling in the markets of presence.
Against the background of increased revenues, the NCBA board of Directors announced the payment of interim dividends in the amount of 3.75 KSh per share, which is higher than last year's level of 2.50 KSh per share and means higher returns for shareholders. Digital banking remains one of the key drivers of NCBA's success: the bank issued digital loans worth 819 billion KSh, which is 26.9% higher than in the same period last year. At the same time, it is noted that mobile platforms accounted for 94% of all client transactions, which underlines the increasing role of technology in increasing the availability of financial services for private clients and businesses.
To support the digital transformation, NCBA has invested 2.4 billion KSh in the development of technological infrastructure, focusing on the introduction of artificial intelligence, strengthening cyber defenses and updating banking systems. These investments have increased the reliability of the service: The level of uninterrupted operation of the systems reached 99.68%, and the Digital Net Promoter Score consumer loyalty index rose to 69%, indicating an increase in customer satisfaction.
NCBA also strengthened its financial position: customer deposits increased by 11% to 551 billion KSh, and total assets increased by 11.5% to 739 billion KSh. The Bank maintained stable capital indicators, having fixed the capital adequacy ratio at 21.7% and the Return on Average Equity at 19%. Gachora stressed that the bank still adheres to the principles of responsible lending, keeping the share of problem loans at 10.5%, which is lower than the average for the Kenyan banking sector of 15.3%.
Kenya remains the main source of income for NCBA: the banking division increased its profit by 24.3% to 13.7 billion KSh. The group's regional subsidiaries in Tanzania, Uganda and Rwanda collectively earned 1.6 billion KSh due to increased lending activity and increased revenues. NCBA's non-banking areas, including investment banking, leasing, insurance and banking insurance, also showed strong momentum, generating a profit of 1.1 billion KSh, which is 40% more than a year earlier.
The Bank continued to expand financing for small and medium-sized businesses: the portfolio of loans for SMEs grew by 12% and reached 44.7 billion KSh. The direction of money management has also strengthened: Assets under management rose to 101 billion KSh, and the number of active customers exceeded 60,000. NCBA strengthened its position in the field of sustainable financing by developing electric vehicle lending and solar panel leasing projects, and the CarDuka digital car sales platform secured transactions worth 1.94 billion KES. The growth of retail banking was supported by a regional network of 123 branches, digital customer acquisition initiatives, and addressable solutions that attracted more than 10,000 new users each month. In addition, the group continued to implement sustainable development programs through environmental and community initiatives. During the reporting period, NCBA planted and grew more than 340,000 trees, and the bank's social projects improved the lives of more than 400,000 people. The Bank also invested over 100,000 hours in employee training and maintained a high retention rate of 91%.
Looking to the future, NCBA said it remains focused on expanding financial inclusion, supporting businesses, and applying technology to create new growth points in East Africa. Gachora stressed that the group remains committed to creating long-term value for customers, shareholders, employees and society through innovation and a responsible banking approach. These results place NCBA among the financial institutions in the region that benefit from digitalization and the growing demand for affordable banking solutions.
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