Nelly Wainaina

FY2025 earnings signal that @NCBABankKenya has finally broken away from the drag of a sagging top-line, a headache that dominated my conversation with @JohnGachora in FY2023 & FY2024. However, I told John that in my analysis, the FY2025 numbers still point to a cost of funding problem for the group, despite the strong momentum registered in the P&L (NIMs up 24.0% y/y). He takes a different view & makes the following points: · NCBA isn't a legacy Tier I bank, Tier I status was attained courtesy of the merger consummated in 2019. As such, it hasn't had the advantage of incumbency that has allowed some competitors to easily mop up cheap transactional deposits, especially a strong government franchise · It's a reflection of the group's funding profile given the nature of its client base · The question shouldn't just be one of a transactional vs term deposits split, but also about the quality & price of the term deposits for the players who don't enjoy the legacy of having been around that long · He argues that the key risk with a skew towards transactional deposits is how transitory they can get & the vulnerabilities that then presents to a bank. He believes NCBA is much better of with a stable & more predictable term deposits profile than lean more towards transactional that could see-saw significantly

On sustainability, from green finance (KES 1.9B) to EV financing, community investments, and over 519K trees planted. Our #NCBAChangeTheStory initiative is turning purpose into measurable impact. #NCBAFY2025FinancialResults #Goforit