Equity Group posts 32pc surge in profit as regional subsidiaries power strong Q3 performance

October 31, 2025 in Business, Companies, Financial Services by Editor

Equity Group Holdings Plc has announced a 32pc jump in profit after tax for the third quarter of 2025, marking another milestone in the financial group’s transformation into a diversified, technology-driven regional powerhouse. The Group’s net earnings rose to Kshs 54.1 billion, up from Kshs 40.9 billion last year, buoyed by strong performance from its subsidiaries across East and Central Africa, efficiency gains, and digital innovation.

The Group’s resilience was reflected in improved profitability ratios, with Return on Average Equity standing at 26.4% and Return on Average Assets at 4.1pc. Net interest income grew by 16pc, while non-funded income rose 3%, helping to push down the cost-to-income ratio to 50.6pc from 55.1pc a year earlier.

Equity Group Managing Director and CEO, Dr. James Mwangi, said the results demonstrate the strength of the Group’s strategic transformation, anchored in the Africa Recovery and Resilience Plan (ARRP). “Our performance reflects the success of our tri-engine business model, operational efficiency, and commitment to transforming lives. By empowering MSMEs, leveraging digital platforms, and aligning with Africa’s socio-economic priorities, we continue to drive inclusive growth and create shared prosperity,” he said.

Equity’s regional diversification continues to yield results, with subsidiaries contributing nearly half of total profit. Regional units now account for 50% of deposits, 53% of the loan book, and 49% of Group banking revenues. The Democratic Republic of Congo (DRC), Rwanda, Uganda, and Tanzania all posted significant growth in profitability, deposits, and loans, underscoring the Group’s deepening footprint across the region.

In Uganda, Equity Bank recorded a 61% jump in profit after tax to Kshs 2.9 billion, up from Kshs 1.8 billion. Investment securities grew by 23% to Kshs 39.6 billion, while total equity rose by a similar margin to Kshs 18.5 billion. The bank also achieved a sharp reduction in non-performing loans, with the NPL ratio improving from 20.9% to 8.8%, signalling strengthened credit management and recovery strategies.

Rwanda delivered strong momentum with a 34% increase in loans and an 18% rise in equity, while Tanzania’s operations almost doubled profit to Kshs 1.5 billion. In the DRC, profit rose by 21% to Kshs 13.8 billion, supported by a 19% expansion in the loan book. Equity Bank Kenya also rebounded strongly, posting a 51% rise in profit after tax to Kshs 31.1 billion.

The Group’s insurance arm also posted impressive gains, with Equity Insurance Group recording a 71% increase in gross written premiums and a 36% rise in profit before tax. This performance supports Equity’s evolution from a traditional bank into a fully integrated financial services provider, offering life, health, and general insurance alongside traditional banking and investment services.

Beyond financial performance, the Group sustained its leadership in social impact. Through the Equity Group Foundation, cumulative social investments have reached nearly Kshs 98 billion ($715 million), spanning education, entrepreneurship, health, and climate resilience initiatives. Over 39 million trees have been planted, 80,000 farmers trained in climate-smart agriculture, and nearly 720,000 MSMEs supported through blended finance programmes.

Technology remains at the heart of Equity’s strategy, with over 98% of customer transactions now conducted outside branches—87% of them through digital channels. The Group has integrated advanced AI, data analytics, and next-generation infrastructure to enhance efficiency and security, while positioning itself to capture emerging opportunities in fintech and digital commerce.

“The strong growth across our markets gives us confidence in our long-term expansion trajectory,” Dr. Mwangi said. “With system stability fully restored and our regional businesses thriving, we are focused on product innovation and strengthening our role as a one-stop financial services provider for Africa’s growth story.”

Equity Group was recently named Best Regional Bank in East Africa at the 2025 African Banker Awards and retained its position as Kenya’s most valuable brand, reflecting both market leadership and the trust it continues to earn across the continent.