Equity Group has reported a 17% rise in profit after tax for the half-year ended June 2025, hitting KSh 34.6 billion compared to KSh 29.6 billion in the same period last year. The strong performance comes despite a challenging macroeconomic environment, as the bank’s multi-year transformation strategy begins to deliver results.
The group recorded its strongest quarterly pre-tax profit in history, reaching KSh 22.9 billion in Q2 2025, well above the four-year average of KSh 14.8 billion. Subsidiaries across the region posted double-digit growth in profit after tax, with Kenya and Uganda up 40%, Tanzania up 75%, and the Democratic Republic of Congo (DRC) rising 22%.
Over the past four years, Equity has undergone a fundamental overhaul, repositioning itself from a financial inclusion-focused bank to a driver of private sector-led development financing. This shift is anchored in the Africa Recovery and Resilience Plan (ARRP), which forms the backbone of the Group’s 2030 strategic goal to expand operations to 15 countries and serve 100 million customers.
Dr. James Mwangi, Equity Group Managing Director and CEO, credited the results to strategic execution across agriculture, manufacturing, trade, mining, and SME segments. “We are transforming the structure and performance of the Group, creating resilience and growth potential despite muted loan book expansion and global uncertainties,” Mwangi said.
Key Financial Highlights
- Net interest income grew by 9% following an 18% drop in interest expenses.
- Loan book increased by 4% to KSh 825.1 billion.
- Customer deposits rose 2% to KSh 1.32 trillion.
- Total assets climbed 3% to KSh 1.8 trillion.
- Earnings per share advanced 16% to KSh 8.8.
- Cost of risk declined to 1.7% from 2.6% last year.
The Group maintained a healthy loan-to-deposit ratio of 62.5% with strong capital buffers, including a core capital-to-risk-weighted-assets ratio of 16.5% and liquidity at 58.6%.
Subsidiary Performance
- Kenya: Profit after tax rose 40% to KSh 19.5 billion; net interest income up 18%.
- DRC: Profit after tax up 22% to KSh 9.1 billion; loans grew 13%.
- Uganda: Profit after tax climbed 40% to KSh 1.9 billion; deposits up 5%.
- Rwanda: Assets grew 21% to KSh 130.1 billion; loan book up 23%.
- Tanzania: Profit after tax surged 75% to KSh 1.1 billion; loans up 19%.
Regional operations now contribute nearly half of deposits, loans, and banking revenues, underscoring Equity’s evolution into a pan-African financial powerhouse.
Insurance and Non-Banking Growth
Equity’s diversification strategy also gained traction in insurance. The Group operates life, general, and health insurance businesses, with the life unit now the second-largest group credit insurer in Kenya. Insurance revenues grew 59% in the half-year, with total insurance assets up 40% to KSh 31.48 billion.
Non-banking segments, including technology services, now contribute 4% of Group revenue, generating a return on equity of 42.4% compared to the Group’s 26.1%.
Digital Transformation and Sustainability
Equity has invested heavily in fourth industrial revolution-ready systems, leveraging AI, data analytics, and machine learning to enhance service delivery. Over 98% of transactions occur outside branches, with 87.4% on digital channels.
On sustainability, the Equity Group Foundation invested $715 million in social and environmental programs, including scholarships, SME financing, clean energy distribution, and climate resilience initiatives. Equity has planted 36.4 million trees and facilitated over USD 200 million in climate finance, earning recognition from the IFC for leadership in climate-related transactions.
Awards and Recognition
Equity Bank was named “Best Regional Bank in East Africa” at the African Banker Awards 2025 and retained its title as Kenya’s most valuable brand for the second consecutive year.
