Equity Group records a 7 percent year-over-year increase in customer deposits to Kshs 1.32 trillion from Kshs 1.24 trillion, which fuels a 3 percent year-over-year expansion of net loans to Kshs 804.7 billion from Kshs 779.2 billion.
Equity Group is a regional systemic financial services provider that ranks second in three of the six markets it serves—Kenya, the Democratic Republic of the Congo, and Rwanda—by showcasing strategic agility and resilience in a dynamic global economic landscape.
The bank’s Q1 2025 financial performance report, which was released on Thursday, is evidence of the group’s strong and sustainable growth made possible by this strategic focus.
Equity Group reports Kshs 15.4 billion Profit After Tax
Due to its diversified business model and careful financial management, the Group has been able to achieve strong profitability, reporting a Profit After Tax (PAT) of Kshs 15.4 billion and achieving a Return on Equity (ROAE) of 23.9 percent and a Return on Assets (ROA) of 3.5 percent.
Equity Group’s total assets increased by 4 percent annually to Kshs 1.75 trillion from Kshs 1.69 trillion, indicating its ongoing stability and ability to propel economic change.
Before accounting for non-operational inflation in South Sudan, profit before taxes increased by 8 percent, from Kshs 17.3 billion to Kshs 18.8 billion.
To promote sustainable economic growth and make a significant impact on society, Equity Group has taken a tri-engine approach, combining sustainability, social, and commercial priorities.
In order to succeed in the various markets it serves, the Group keeps expanding on its history of self-disruption, agility, scalability of its business model, resilience, strong governance, and a long track record of execution. The value it generates for its stakeholders and clients has been increasing.
Improvement in Kenya’s subsidiary
With a 7 percent increase in deposits to Kshs.792.7 billion, a 19 percent increase in total revenue, and a 23 percent increase in non-funded income to Kshs 7.57 billion, the Kenya subsidiary has demonstrated recovery and achieved a 50 percent increase in profit before taxes.
Kenya’s equity and return on assets increased to 26 percent and 3.4 percent, respectively. Although still a significant contributor, the Kenyan banking subsidiary made up 51 percent of total revenue.
Regional subsidiary
The group’s growth trajectory continues to be significantly influenced by its regional subsidiaries. With deposits up 14 percent and loans up 9 percent annually, Equity Bank Tanzania’s recovery momentum is still evident.
The 540 percent increase in profit before taxes had a positive effect on returns, with returns on equity and assets at 22.6 percent and 3.2 percent, respectively.
With a strong performance in the Democratic Republic of the Congo (DRC), where customer loans increased by 9 percent year over year to Kshs 252.1 billion and deposits increased by 8 percent to Kshs 468.4 billion, EquityBCDC is a key component of the Group’s Africa Recovery and Resilience Plan (ARRP). The subsidiary plays a key role in funding priority industries like manufacturing, MSMEs, and agriculture.
Regional subsidiaries made up 47 percent of total assets, 48 percent of net loans, and 45 percent of profit before taxes. Key markets such as Rwanda, Tanzania, and the Democratic Republic of the Congo saw increases in both deposits and loans.
Equity’s strategic positioning as a cross-border financial powerhouse is strengthened by this regional performance, which also supports the company’s expanding presence in East and Central Africa.
While releasing the Q1 2025 results, Dr James Mwangi, Equity Group Holdings Plc Managing Director and CEO, said, “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape, where our financial strength provides the flexibility to seize opportunities as the regional economy presents diversified levers for growth. This, coupled with the strength of our regional and non-banking subsidiaries, positions us to continue delivering sustainable growth and creating long-term value for our customers, communities, and shareholders, supported by our strong liquidity and total capital positions of 58.5 percent and 18.3 percent respectively.”
Equity Group’s 3% increase in net interest income
A 3 percent increase in net interest income (from Kshs 27.8 billion to Kshs 28.6 billion) and a 1 percent decrease in total expenses (to Kshs 29.5 billion) led to a Kshs 18.7 billion profit before taxes.
Significantly below the published industry average of 17.2 percent, the Non-Performing Loan (NPL) ratio stayed below the industry average at 14 percent. The Group’s strong asset quality is further reinforced by its 67 percent NPL coverage.
Equity Group’s non-banking businesses
The Group’s non-banking businesses, such as insurance, fintech, and investment banking, have maintained their excellent results. By providing integrated, customer-focused solutions that cater to a range of financial needs throughout the continent, these companies are strengthening the Group’s value proposition in addition to promoting revenue diversification.
With a 27 percent increase in profit before taxes to Kshs 414 million from Kshs 321 million, the insurance industry is still producing positive results. In order to improve financial protection and strengthen customer relationships, the Group has issued 15.3 million policies since its founding in March 2022, with 80 percent of those policies being distributed digitally.
A major strategic milestone is being reached as the Group, which is focused on long-term value creation, is currently acquiring a health insurance subsidiary licence to supplement its current general and life assurance licences.
This action will improve the Group’s capacity to provide a full range of insurance options, guaranteeing that clients in corporate, SME, and retail sectors can obtain integrated solutions that safeguard their wealth, health, and lives.
Equity Bancassurance Intermediary Limited has been instrumental in promoting growth, risk mitigation, and insurance literacy in keeping with its strategic goal of layering insurance solutions across banking products.
The Group’s diversification strategy was strengthened by the impressive performance of the investment bank and technology businesses, whose profitability increased by 142 percent and 10 percent, respectively.
This achievement puts the Group in a strong position to support and further its Africa Recovery and Resilience Plan (ARRP), a private sector-led development initiative supported by Equity that aims to connect, finance, empower, and catalyse businesses and households throughout Africa.
In addition to offering financial and technological resources, it gives people, companies, and communities a clear framework for growth, enhancing their capacities and reducing risks so they can use these resources effectively and efficiently to realise their economic, social, and environmental goals.
With the help and active involvement of numerous stakeholders, the Africa Recovery and Resilience Plan (ARRP) seeks to promote long-term change throughout the continent.
Equity Group processed 87% transactions through its digital channels
Equity Group has kept up its investments in infrastructure, diversification, and technology. 87 percent of all transactions are now processed through its modernised digital channels, giving consumers access to a seamless, dependable, and safe digital-first experience.
Strong customer adoption of the Group’s mobile banking platforms is demonstrated by the 39.5 million transactions handled by the Equity Mobile App and USSD, which had a value of Kshs. 942.7 billion, up from 37.8 million transactions with a value of Kshs. 720.2 billion during the same reporting period last year, and the 92 million transactions handled by Equitel, which increased from 65.2 million transactions.
EazzyFX, the Group’s foreign exchange trading platform, reported a transaction value of Kshs 29.5 billion, up from Kshs 24.1 billion, and Equity Online reported a transaction value of Kshs 41.7 billion, up from Kshs 36 billion.
Equity’s position in retail and enterprise payments was further solidified when Pay With Equity (PWE), the Group’s interoperable merchant and payments platform, processed Kshs 567.6 billion, up from Kshs 487.5 billion across more than 1.1 million merchants.
Additionally, ONE Equity, the Group’s integrated digital platform, provides customers with access to a variety of goods and services from multiple digital channels, enhancing cross-selling, expanding customer options, and boosting engagement.
Dr Mwangi concluded, “Our focus on financial inclusion, regional expansion, and sustainable growth will enable us to continue being a catalyst for economic empowerment and resilience across Africa. This commitment is underscored by our recent recognition as a Superbrand in East Africa for the fourth time, affirming our dedication to quality, reliability, and excellence in the financial services sector.”