NCBA Group, one of Kenya’s top financial institutions, saw its share price surge by 8.27% on Tuesday following reports that the lender is in merger talks with Standard Bank’s local subsidiary, Stanbic IBTC Kenya, according to Bloomberg.
Data from the Nairobi Securities Exchange (NSE) show NCBA’s share price jumped from KSh 69.50 ($0.51) on Monday to KSh 75.25 ($0.56) at Tuesday’s close — its highest on record. The group, currently the most expensive banking stock on the NSE, maintained strong momentum in Wednesday’s intraday trading.
“NCBA is the fifth most valuable stock on the NSE, boasting a market capitalization of KSh 124 billion ($917.6 million), accounting for 4.63% of total equity market capitalisation, trailing Safaricom, Equity Group, KCB Group, and East African Breweries,” said the African Exchange platform.
Both Joshua Oigara, CEO of NCBA, and Patrick Mweheire, CEO of Standard Bank, declined to comment publicly, saying official statements would be released through the appropriate channels.
Citing unnamed sources, Bloomberg reported that Standard Bank Group, parent company of Stanbic IBTC Kenya, is in talks to acquire NCBA Bank. If completed, the merger could create Kenya’s third-largest lender with assets of approximately KSh 1.1 trillion ($8.14 billion), ranking behind KCB Group (KSh 1.97 trillion) and Equity Group Holdings (KSh 1.8 trillion).
Standard Bank Group, valued at KSh 774 billion ($5.72 billion), owns 75% of Stanbic IBTC’s assets, while NCBA reported KSh 656 billion ($4.85 billion) in assets for the first half of 2025.
This potential merger aligns with Mweheire’s 2023 vision to strengthen Standard Bank’s presence in Kenya through partnerships with tier-one lenders. For NCBA, which was formed in 2019 through a merger between Commercial Bank of Africa (CBA) and NIC Bank, the deal would further expand its regional scale and capital base across East Africa.
Investor anticipation fueled heavy trading, with 341,475 shares worth KSh 25.7 million ($190,180) changing hands. The stock has gained 7.5% in one week, 40.7% in six months, and 78% over the past year, underscoring rising market optimism.
Strong financial performance supports momentum
NCBA’s half-year 2025 results underscore sustained growth. After tax profit rose by 12.6% to KSh 11.1 billion ($85.8 million), driven by a 26.7% increase in net interest income to KSh 20.9 billion ($161.5 million).
Operating income grew 12.7% to KSh 35.3 billion ($272.9 million), while total assets reached KSh 663 billion ($5.12 billion).
Shareholders’ equity climbed 16.8% to KSh 118 billion ($913.8 million), and non-performing loans declined 18.6% to KSh 38.1 billion ($294.6 million), reflecting stronger credit quality.
With robust profitability, healthy capital levels, and renewed merger optimism, analysts believe a deal could progress smoothly, positioning NCBA for greater regional influence.
East African banks gain ground despite modest capital base
According to the African Business Magazine’s Top 100 Banks in Africa 2025 survey, East African banks are now among the fastest-growing on the continent. The region recorded 21 entries, up from 13 in 2022, making it the second most represented region after West Africa.
Kenyan banks contributed 10 entries, highlighting their operational strength. However, despite this growth, East Africa’s collective Tier 1 capital remains the smallest among regions, totalling $12.7 billion in 2025, up from $10.5 billion in 2024.
Analysts say if the merger proceeds, capital adequacy will be key, potentially attracting foreign investors and venture capital to finance the expanded balance sheet.
Note: Figures reported in Kenya Shillings have been converted using the official exchange rate: Ksh 1/$0.007739 as of October 14, 2025; and Ksh 1/$0.007732 (Jan – June 2025); and Ksh 1/$0.00741(Jan – June 2024)
