Advertisement NCBA Group PLC Q1 Profit Rises to KES 6 BillionStrong Revenue Growth Drives Q1 PerformanceNCBA Group PLC has reported a profit after tax of KES 6.0 billion for the first quarter ending March 2026. This represents a 9 percent increase compared to KES 5.5 billion recorded during a similar period last year.The Groups operating income grew by 15 percent to KES 20 billion, supported by sustained business growth, revenue diversification, and resilience across its core operating segments.Profit before tax rose to KES 7.4 billion, while operating expenses increased by 9 percent to KES 9.7 billion. Customer deposits closed at KES 544 billion, reflecting a 10 percent growth year-on-year, while total assets rose by 13 percent to KES 741 billion.However, provisions for credit losses jumped by 56 percent to KES 2.5 billion as the lender adopted a more cautious approach to credit risk amid a volatile business environment.Group Managing Director John Gachora said the strong performance marked a positive start to the Groups new growth strategy.As we present our financial results for the first quarter of 2026, I am pleased to report that the Group has delivered a strong start to our new strategy anchored on four pillars: Fortifying the Core, Scaling High-Growth Segments, Unlocking New Growth Frontiers and Powered by a Future Ready Ubuntu purpose-driven culture, said Gachora.He added that the Group maintained a strong capital position, with a total capital adequacy ratio of 21.8 percent, well above the regulatory minimum of 14.5 percent.The lenders return on average equity remained stable at 18.4 percent, highlighting its focus on delivering long-term shareholder value.Kenya Business and Regional Subsidiaries Sustain GrowthNCBA Bank Kenya remained the Groups key profitability driver, posting a 20 percent increase in profit before tax to KES 6.5 billion.Regional subsidiaries in Uganda, Tanzania, and Rwanda delivered a combined profit before tax of KES 707 million. Meanwhile, non-banking subsidiaries including NCBA Investment Bank, NCBA Insurance, Leasing, and BancAssurance posted a combined KES 641 million in profit before tax.The Group also reported strong growth in its wealth management business. NCBA Investment Bank grew assets under management to KES 101.5 billion, while its wealth customer base surpassed 60,000 clients.NCBA Insurance and BancAssurance also recorded growth, with combined gross written premiums reaching KES 5 billion.NCBA Group PLC Q1 Profit Rises to KES 6 BillionDigital Banking and Asset Finance Power ExpansionNCBA continued to strengthen its digital banking capabilities through technology investments focused on cybersecurity, customer experience, and AI-powered onboarding and credit solutions.The Group improved service uptime to 99.74 percent while its Digital Channels Net Promoter Score rose to 62, reflecting stronger customer satisfaction and trust.Its upgraded online banking platform, NCBA ConnectPlus, continued to support corporate customers, handling KES 181 billion in lending and KES 211 billion in deposits.The lenders strategy to scale high-growth segments also continued to gain traction. In asset finance, where NCBA commands a 32 percent market share, its digital vehicle trading platform CarDuka has attracted nearly 7 million users.The newly launched SME lending solution, NCBA BOOSTA, is expected to accelerate growth in the MSME segment after the Group reported KES 8.3 billion in MSME lending during Q1 2026.Digital banking remained a major growth driver for the Group, with 98 percent of all transactions conducted through digital channels. Digital loan disbursements grew by 27 percent to KES 391 billion during the quarter.Sustainability and Community Investments Remain Key FocusBeyond financial performance, NCBA continued to invest in sustainability and community initiatives across the region.The Group said it positively impacted more than 200,000 livelihoods through various social programs during the quarter. Nearly 200 students benefited from scholarships, while more than 200,000 trees were planted in partnership with organizations including the Kenya Forest Service and the National Forest Association of Uganda.Sports sponsorships and creative economy programs also supported thousands of beneficiaries, including golfers, cyclists, and young creatives.On green financing, the Group played a lead role in the Kenya Mortgage Refinance Company green bond that raised KES 3 billion. NCBA also served as Trustee and Receiving Bank for the KES 4.8 billion Two Rivers International Finance and Innovation Centre Green Income REIT.The lender further disbursed KES 190 million in green financing during the quarter.Looking ahead, Gachora said the proposed transaction with Nedbank Group Limited remained on course, with major milestones progressing as planned.He added that while the Group had not experienced significant disruptions from the ongoing Middle East geopolitical tensions, management continued to closely monitor developments and their potential impact on inflation, liquidity, and broader economic conditions.The post NCBA Group PLC Q1 Profit Rises to KES 6 Billion appeared first on Africa Business News.