NCBA profit climbs 12% to Kshs 12.4billion

What the report says

NCBA Group Plc reported stronger first-half results as lending activity and customer deposits rose across East Africa, helping the regional bank absorb a larger amount set aside for possible loan defaults. According to The Independent Uganda, net income increased 12.2% to KSh12.4 billion in the six months ending June 30, up from KSh11 billion a year earlier. Pre-tax profit rose 14.3% to KSh15.5 billion, and operating income climbed 15.1% to KSh40.7 billion.

The bank, which operates in Uganda, Kenya, Tanzania and Rwanda, said customer deposits grew 11% to KSh551 billion and total assets reached KSh739 billion. Loan-loss provisions increased to KSh5.2 billion from KSh3.2 billion, reflecting a more cautious operating environment. NCBA’s board also approved an interim dividend of KSh3.75 per share, up from KSh2.50 a year earlier, which the group presented as a sign of confidence in earnings and capital strength.

The article said Kenya remained the group’s biggest profit contributor, while the regional businesses in Uganda, Tanzania and Rwanda also posted gains. NCBA highlighted continued growth in digital banking, including higher mobile transactions and technology spending to improve security and infrastructure. The bank also said a proposed transaction involving South Africa’s Nedbank Group had cleared an initial shareholder tender stage and still awaited regulatory approvals. In general, the results suggest the lender is benefiting from regional credit demand, even as inflation, high borrowing costs and policy caution continue to shape the wider banking environment.