This growth highlights the success of the Group’s strategic transformation, which includes diversified revenue streams, enhanced efficiency, and strong regional contributions.
The Group’s balance sheet expanded by 9% to KSh1.97 trillion, with customer deposits rising by 4% to KSh1.46 trillion and net loans increasing by 8% to KSh882.5 billion. Additionally, the number of customer accounts grew to 22.4 million, supported by a robust regional distribution and digital ecosystem.
Equity’s total income increased by 12% to KSh217.7 billion, reflecting strong performance across various income streams, including a 17% rise in net interest income and a 7% growth in non-funded income.
Operational efficiency saw a notable improvement, with the cost-to-income ratio dropping from 58.2% to 51%. Over 98% of customer transactions were processed outside branches, with 88.4% of these through digital channels, demonstrating the continued demand for digital services.
Dr. James Mwangi, Equity Group’s Managing Director and CEO, attributed the performance to the Group’s successful transformation into a diversified regional financial services group.
“Our regional subsidiaries now contribute about half of our banking profitability, demonstrating the value of our pan-African footprint,” he said.
Equity’s regional operations, including those in the DRC, Uganda, Rwanda, and Tanzania, contributed significantly to the Group’s profitability, with profits rising by 58% in the DRC and 500% in Uganda.
Subsidiaries accounted for 51% of banking profit before tax and 48% of banking profit after tax.
Equity Bank Kenya Limited (EBKL) also posted a strong performance, with a 63% increase in PAT to KSh39.2 billion, driven by a 28% rise in net interest income. The Bank’s leadership in MSME financing was recognized at the Kenya Bankers Association Sustainable Finance Initiative (KBA SFI) Awards, where it was named the Best Bank for MSME Financing, contributing 45% of all bank lending to SMEs.
The Group’s insurance subsidiary, Equity Insurance Group, also saw substantial growth, with gross written premiums rising 75% to KSh9.17 billion. Profit Before Tax for the insurance unit grew by 36%, and insurance revenue surged by 150%.
Equity’s strong performance is underpinned by its commitment to social impact. Through the Equity Group Foundation (EGF), the Group supported 1,115 scholars with global university scholarships, empowered nearly 1 million entrepreneurs, and provided over KSh401 billion in credit to MSMEs.
Additionally, EGF is training over 600,000 youth in AI, machine learning, and data analytics, further contributing to the continent’s sustainable growth.
As part of its growth strategy, Equity Group continues to execute its 2030 vision, which includes expanding its operations to 15 countries and serving 100 million customers by 2030. The Group is positioning itself as a “Transformation Finance Institution,” mobilizing capital and driving inclusive prosperity across Africa.
Dr. Mwangi concluded, “Through our Africa Recovery and Resilience Plan, we are investing in next-generation digital and AI-enabled capabilities that enhance customer experience, strengthen risk management, and lower the cost-to-serve, while extending access to affordable credit, insurance, and investment solutions.”
Equity Group remains focused on building a future-ready institution that drives inclusive, sustainable growth across Africa, leveraging digital transformation and strategic partnerships.
Leave a Reply