Equity Group posts record 2025 H1 profit as four-year transformation drive bears fruit

August 11, 2025 in Business, Companies, Finance, Financial Services, Investment by Editor

African lender Equity Group has reported a 17pc rise in half-year profit after tax to Kshs 34.6 billion, up from Kshs 29.6 billion in 2024, buoyed by strong subsidiary performance, cost efficiency, and its sweeping transformation programme that has reshaped operations across the region.

The lender delivered its strongest quarterly performance in history, with profit before tax reaching Kshs 22.9 billion in Q2 2025, well above its four-year quarterly average of Kshs 14.8 billion. Group CEO and Managing Director Dr. James Mwangi credited the gains to the successful execution of its 2030 strategic plan, anchored on the Africa Recovery and Resilience Plan (ARRP), which seeks to position the Group as a driver of private sector-led development financing across the continent.

“Continued execution has transformed our balance sheet and performance, especially in agriculture, mining, manufacturing, trade and investment, and SMEs,” Dr. Mwangi said. “The structural changes have created resilience that is now visible in our results.”

Equity’s regional banking units contributed 49pc of deposits, 50pc of the loan book, and 50pc of banking revenue, underscoring the Group’s transition from a Kenya-centric institution to a regional powerhouse.

Subsidiary profit growth was robust:

• Kenya: Profit after tax jumped 40pc to Kshs 19.5 billion; net interest income rose 18pc to Kshs 32.8 billion.

• Uganda: Profit up 40pc to Kshs 1.9 billion; deposits grew 5pc to Kshs 96.8 billion.

• Tanzania: Profit soared 75pc to Kshs 1.1 billion; loans rose 19pc to Kshs 31.3 billion.

• DRC: Profit climbed 22pc to Kshs 9.1 billion; loans expanded 13pc to Kshs 275.4 billion.

• Rwanda: Total assets surged 21pc to Kshs 130.1 billion; loans grew 23pc to Kshs 56.1 billion.

Group net interest income grew 9pc, aided by an 18pc drop in interest expense, while total costs fell 2pc, driven by a 34pc cut in loan loss provisions. The loan book expanded 4pc to Kshs 825.1 billion despite macroeconomic headwinds, with customer deposits rising 2pc to Kshs 1.32 trillion.

Insurance and Non-Banking Growth

Equity’s three insurance arms – life, general, and health – posted a combined 26pc rise in profit before tax, supported by a 115pc jump in gross written premiums to Kshs 5.18 billion. The Life business, now the second-largest group credit insurer in Kenya, grew premiums by 58pc to Kshs 3.8 billion.

The non-banking units, including technology and insurance, increased their share of Group assets to 1.9pc and generated a return on equity of 42.4pc.

Digital Shift and Sustainability

More than 98pc of transactions are now conducted outside branches, with 87.4pc on digital platforms. This shift is part of a strategy to move from high-cost physical channels to self-service solutions, supported by next-generation systems with AI and data analytics capabilities.

Equity Group Foundation, the lender’s social impact arm, invested USD 715 million in education, enterprise development, health, and environmental programmes. Highlights include:

• 29,515 university scholars supported, including 1,061 in top global universities.

• 520,549 clean energy products distributed and 36.4 million trees planted.

• USD 200 million deployed in climate finance.

• Kshs 363.09 billion disbursed to 350,149 MSMEs.

• 3.98 million patient visits at 139 Equity Afia clinics.

Recognition
Equity was named “Best Regional Bank in East Africa” at the 2025 African Banker Awards and retained its title as Kenya’s most valuable brand for a second consecutive year.

With a liquidity ratio of 58.6pc and strong capital buffers, the Group says it is well-positioned to expand lending and pursue its 2030 target of serving 100 million customers in 15 countries.