NCBA Group: Results, Valuation and Momentum — Week of 25 March 2026
NCBA Group released its unaudited financial results for the period ended 30 September 2025 on Wednesday 25 March, a disclosure that lands in the middle of the most concentrated banking earnings day the Nairobi Securities Exchange has seen this cycle. The stock has already moved, climbing +3.7% over the past five sessions from 88.0 KES to 91.25 KES — a signal that the market was positioning ahead of the numbers.
Key Figures — NCBA Group (25 March 2026)
- Current price: 91.25 KES (+3.7% over 5 sessions)
- P/E ratio: 6.9x
- Dividend yield: 6.03%
- RSI (14-day): 55.08 — neutral to mildly constructive
- Risk profile: Medium
A Valuation That Demands Attention
At a P/E of 6.9x, NCBA trades at a meaningful discount to the broader Kenyan banking sector, where comparable mid-to-large cap lenders typically command multiples between 8x and 12x on the NSE Kenya today. This gap either reflects a structural discount — perhaps legacy concerns around asset quality post-merger — or an underappreciated earnings story that today's results may begin to correct.
The dividend yield of 6.03% adds a compelling income dimension. With USD/KES at 129.7, up on the day, KES-denominated assets face ongoing currency headwinds for dollar-benchmarked investors. But for domestic retail investors, a 6% yield in local currency provides genuine real-return protection, particularly if the Central Bank of Kenya (CBK) begins easing its policy rate in the coming quarters as imported inflation pressures ease.