NCBA Group H1 2026 Income Rises 15% to KES 41B

In Short

• NCBA Group reported H1 2026 operating income of KES 41 billion, up 15% year on year.
• Customer deposits rose 11% to KES 551 billion, and gross loans grew 20% to KES 382 billion.
• The bank declared an interim dividend of KES 3.75 per share, up from KES 2.50 in H1 2025.
• The group says its Nedbank partnership deal is on track for completion in Q3 to Q4 2026.

What Happened

NCBA Group published its H1 2026 investor deck with higher income, balance sheet growth, and a bigger interim dividend. The lender said operating income rose 15% to KES 41 billion, helped by higher net interest income (money earned from loans minus interest paid on deposits) and net fee income.

The group reported a net interest margin of 7.0%, up from 6.6% in H1 2025. Net interest margin is a common banking metric that shows how much profit a bank makes on lending relative to its earning assets.

NCBA also pointed to “positive operating leverage,” with its cost to income ratio improving to 48.7% from 52.5%. Cost to income ratio measures overheads as a share of income, lower is usually better.

On the balance sheet, deposits increased to KES 551 billion and gross loans rose to KES 382 billion. The group said its capital adequacy ratio was 21.7%, above the 14.5% regulatory minimum.

Why It Matters

For East Africa’s banking market, NCBA’s update signals that well-capitalised lenders are still growing lending and deposits, even as credit risk stays in focus. NCBA reported a non-performing loan ratio of 10.5%, below the Kenya industry average of 15.3% cited in the deck.

The bigger interim dividend may also appeal to income-focused investors, especially when paired with higher profitability metrics like return on average equity of 19.0%.

NCBA’s strategy update also matters for tech and digital finance. The group said it is investing in core platforms, with a 99.14% transaction success rate and 37 deployed AI use cases. It also reported KES 819 billion in digital disbursements through telco channels across Africa, a sign that bank to telecom distribution remains a key route for mass-market digital lending.

Finally, the bank’s pending transaction with Nedbank is one to watch. NCBA said the offer closed on 10 July 2026 with acceptances for 79.9% of issued shares, and completion is expected between Q3 and Q4 2026, subject to remaining approvals.